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Problem 4-12 Contrasting ABC and Conventional Product Cost [LO4-2, LO4-3, L04-4) Precision Manufacturing Inc. (PMI) makes two types of industrial component parts--the EX300 and the TX500. It annually produces 50,000 units of EX300 and 11,500 units of TX500. The company's 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 company's two product lines is shown below: Direct materials Direct labor EX300 $356, 325 $110, eee TX500 $152,550 $ 37,500 Total $588,875 $147,500 The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Activity EX300 80,000 Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) Total manufacturing overhead cost Total 137,500 Manufacturing Overhead $144,375 67.509 75,750 36,875 $324,5ee TX500 57,500 200 25 225 $110,eee $37,5ee $147,5ee Required: 1-a. Compute the plantwide overhead rate that would be used in the company's 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 Required: 1-a. Compute the plantwide overhead rate that would be used in the company's 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. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2A Req 2B Compute the plantwide overhead rate that would be used in the company's conventional cost system. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLS Reg 1B > Required: 1-a. Compute the plantwide overhead rate that would be used in the company's 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. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 2A Req 2B Using the plantwide rate, compute the unit product cost for each product. (Round your intermediate calculations and final answers to 2 decimal places.) EX300 TX500 Unit product cost Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Req 2A Reg 2B Compute the activity rate for each activity cost pool. (Round your Machining and General factory activity rates to 2 decimal places.) Activity Cost Pools Machining Setups Actity Rate per MHR per setup hr. per product per DLS Product-level General factory Req 1B Req 2B > 2-b. Using the activity rates, compute the unit product cost for each product. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Req2B Using the activity rates, compute the unit product cost for each product. (Round your intermediate calculations and final answers to 2 decimal places.) EX300 TX500 Unit product cost ( Req 2A Reg 28 )

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