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Jacarda Company makes a composting bin that is subject to wide

seasonal variations in demand. Unit product costs are computed on a

quarterly basis by dividing each quarter$$s manufacturing costs

$($materials$,$ labour, and overhead$)$ by the quarter$$s production in

units. The company$$s estimated costs, by quarter, for the coming

year are given below:$$Management finds the variation in unit product costs to be

confusing and difficult to work with. It has been suggested that

the problem lies with manufacturing overhead, since it is the

largest element of cost$.$ Accordingly, you have been asked to find a

more appropriate way of assigning manufacturing overhead cost to

units of product. After some analysis, you have determined that the

company$$s overhead costs are mostly fixed and therefore show little

sensitivity to changes in the level of production.$$Required:$1.$Calculate the predetermined overhead

rate based on units and direct labour?$($Round your

"per unit" answer to $2$ decimal places.$)2.$Recompute the company$$s unit product

costs in accordance with rate per unit in $(1)$

above.$($Round your answers to $2$ decimal

places.$)$ Jacarda Company makes a composting bin that is subject to wide seasonal varlations in demand. Unit product costs are computed on

a quarterly basis by dividing each quarter's manufacturing costs $($materials$,$ labour, and overhead$)$ by the quarter's production in units.

The company's estimated costs, by quarter, for the coming year are given below:

Management finds the varlation in unit product costs to be confusing and difficult to work with. It has been suggested that the problem

les with manufacturing overhead, since it is the largest element of cost$.$ Accordingly, you have been asked to find a more appropriate

way of assigning manufacturing overhead cost to units of product. After some analysis, you have determined that the company's

overhead costs are mostly fixed and therefore show little sensitivity to changes in the level of production.

Required:

Calculate the predetermined overhead rate based on units and direct labour?

Note: Round your "per unit" answer to $2$ decimal places.

Recompute the company's unit product costs in accordance with rate per unit in $(1)$ above.

Note: Round your answers to $2$ decimal places.

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