Additional information about the company follows: a. Model X200 requires $40 in direct materials per unit, and model X99 requires $23. b. The direct labor workers are paid $30 per hour. c. The company has always used direct labor-hours as the allocation base for applying manufacturing overhead cost to products. d. Model X200 is more complex to manufacture than model X99 and requires special equipment. e. Because of the special work required in (d) above, the company is considering an activity-based absorption costing that applies manufacturing overhead cost to products using three activity cost pools: Required: 1. Assume the company continues applying overhead costs to products using direct labor-hours. a. Compute the plantwide predetermined overhead rate. b. Compute each model's unit product cost. 2. Assume the company decides to apply overhead cost to products using activity-based absorption costing. a. Compute the activity rate for each activity cost pool and determine the amount of overhead cost applied to each model. b. Compute each model's unit product cost
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