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[The following information applies to the questions displayed below.) Puget World, Incorporated, manufactures two models of television sets, the N 800 XL model and the
[The following information applies to the questions displayed below.) Puget World, Incorporated, manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow: Direct Labor- Hours per Unit 3.0 1.4 Model N 800 XL Model N 500 Annual Production 3,000 units 15, 000 units Total Direct Labor-Hours 9,000 21, 000 30,000 Additional information about the company follows: a. Model N 800 XL requires $90 in direct materials per unit, and Model N 500 requires $45. b. The direct labor wage rate is $15 per hour. c. The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products. d. Model N 800 XL is more complex to manufacture than Model N 500 and requires the use of special equipment. Consequently, the company is considering the use of activity-based costing to assign manufacturing overhead cost to products. Three activity cost pools have been identified as follows: Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 480,000 225,000 1, 815, 000 $ 2,520,000 Activity Measure Number of setups Machine-hours Direct labor-hours Model N 800 XL 160 15, 000 9,000 Expected Activity Model N 500 240 0 21, 000 Total 400 15, 000 30, 000 Reg 2A1 Reg 2A2 Req 2B Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) per setup Machine setup Special processing General factory per MH per DLH Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. Determine the amount of overhead cost that would be assigned to each model using the activity-based costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Model N 800 XL Model N 500 Overhead cost per unit Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. Compute the unit product cost of each model. (Round your intermediate calculations and final answers to 2 decimal places.) Model N 800 XL Model N 500 Unit product cost
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