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Precision Manufacturing Inc. (PMI) makes two types of industrial component partsthe EX300 and the TX500. It annually produces 52,000 units of EX300 and 11,700 units of TX500. The companys conventional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the companys two product lines is shown below: EX300 TX500 Total Direct materials $ 358,325 $ 154,550 $ 512,875 Direct labor $ 112,000 $ 38,500 $ 150,500 The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Activity Activity Cost Pool (and Activity Measure) Manufacturing Overhead EX300 TX500 Total Machining (machine-hours) $ 161,575 82,000 58,500 140,500 Setups (setup hours) 81,600 35 220 255 Product-level (number of products) 77,390 1 1 2 General factory (direct labor dollars) 40,635 $ 112,000 $ 38,500 $ 150,500 Total manufacturing overhead cost $ 361,200 Required: 1-a. Compute the plantwide overhead rate that would be used in the companys conventional cost system. 1-b. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2-b. Using the activity rates, compute the unit product cost for each product.

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