The following information applies to the questions displayed below Puget World, Inc , 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 Annual Production Total Direct Labor Hours Model N 800 XL 2 5 6,000 units 15,000 Model N 500 1 2 12,500 units 15,000 30,000 Additional information about the company follows a Model N 800 XL requires $75 in direct materials per unit, and Model N 500 requires $30 b The direct labor wage rate is $22 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 Activity Measure Estimated Overhead Cost Machine setups Number of setups $ 450,000 Special processing Machine hours 210,000 General factory Direct labor hours 1,590,000 $ 2,250,000 Expected Activity Activity Measure Model N 800 XL Model N 500 Total Number of setups 210 290 500 Machine hours 17,500 0 17,500 Direct labor hours 15,000 15,000 30,000 Required 1 Assume that the company continues to use direct labor hours as the base for applying overhead cost to products a Compute the predetermined overhead rate (Round your answer to 2 decimal places ) b Compute the unit product cost of each model (Round your answers to 2 decimal places ) 2 Assume that the company decides to use activity based costing to assign manufacturing overhead cost to products a(1) Compute the activity rate for each activity cost pool (Round your answers to 2 decimal places ) a(2) Determine the amount of overhead cost that would be assigned to each model using the activity based costing system (Round your answers to 2 decimal places ) b Compute the unit product cost of each model (Round your answers to 2 decimal places )

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[The following information applies to the questions displayed below.]

Puget World, Inc., manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow:

Additional information about the company follows:

a.	Model N 800 XL requires $75 in direct materials per unit, and Model N 500 requires $30.
b.	The direct labor wage rate is $22 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:

Expected Activity

Activity Measure

Model N 800 XL

Model N 500

Total

Number of setups

210

290

500

Machine-hours

17,500

Direct labor-hours

15,000

30,000

Required:

1.	Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products.

a.	Compute the predetermined overhead rate. (Round your answer to 2 decimal places.)

Compute the unit product cost of each model. (Round your answers to 2 decimal places.)

Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products.

a(1)	Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)

a(2)	Determine the amount of overhead cost that would be assigned to each model using the activity-based costing system. (Round your answers to 2 decimal places.)