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Problem 4-17 (Algo) Contrast Activity-Based Costing and Conventional Product Costing [LO4-2, L04-3. LO4-4] [The following information applies to the questions displayed below.] Puget World, Incorporated, manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow C Model N B00 XL Model N Sea Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Problem 4-17 (Algo) Part 1 Direct Labor- Hours per Unit Additional information about the company follows a. Model N 800 XL requires $60 in direct materials per unit, and Model N 500 requires $15. b. The direct labor wage rate is $19 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: Req 14 3.5 1,2 Reg 18 Predetermined overhead rate Annual Production 4,500 units 12,500 units Activity Measure Number of setups Machine-hours Direct labor-hours Model N 809 XL 120 15,000 15,750 Total Direct Labor Hours 15,750 15,000 30,750 Complete this question by entering your answers in the tabs below. e per DLH Estimated Overhead Cost $ 420,000 195,000 1,230,000 $1,845,000 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. b. Compute the unit product cost of each model. Expected Activity Model N 500 320 0 15,000 Total 420 Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. Compute the predetermined overhead rate. (Round your answer to 2 decimal places.) 9944153 15,000 30,750

Requilred information Problem 4-17 (Algo) Contrast Activity-Based Costing and Conventonal Product Costing [L04-2. 1043. [04-4] [The following informotion opplies to the questions disployed below] Puget World, Incorporated, manufoctures two modeb of television sets, the N 800L model and the N 500 model. Data regarding the two products follow Additional information about the company follows: a. Model N800XL requires $60 in direct materials per unit, and Model N 500 requires $15. b. The direct lobor woge rate is $19 per hour. c. The company hos olways used direct labor-hours as the bose for opplying monufacturing overheod cost to products. d. Model N 800 XL is more complex to manufocture thon Model N 500 and requires the use of special equipment. Consequently, the compony is considering the use of octivity-bosed costing to assign monufocturing overheod cost to products. Three octivity cost pools hove been identified os follows: Problem 4-17 (Algo) Pert 1 Required: 1. Assume that the company continues to use direct labor-hours as the base for opplying overheod cost to products. a. Compute the predetermined overheod rote. b. Compure the unit product cost of each model. Complete this question by entering your answers in the tabs below. Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. Campute. the prestermined overhesd rate. (Round your afiswer to 2 decimal places.) Problem 4-17 (Algo) Contrast Activity-Based Costing and Conventional Product Costing [LO4-2 LO4-3. [04-4] [The following informotion opplies to the questions disployed below.] Puget World, Incorporated, manufactures two models of television sets, the N800L model and the N 500 model. Data regarding the two products follow. Additional information about the company follows: a. Model N800XL requires $60 in direct materials per unit, and Model N 500 requires $15. b. The direct lobor woge rate is $19 per hour. c. The compony has olways used direct labor-hours as the bose for opplying manufocturing overheod cost to products. d. Model N 800 XL is more complex to manufocture than Model N 500 ond requires the use of special equipment. Consequently, the company is considering the use of octivity-bosed costing to ossign manufocturing overheod cost to products. Three octivity cost pools hove been identifed as follows: Problem 4-17 (Algo) Part 1 Required: 1. Assume that the company continues to use direct lobor-hours os the bose for opplying overhead cost to products o. Compute the predetermined overheod rote. b. Compute the unit product cost of eoch model. Complete this question by entering your answers in the tabs below. Assume that the company continues to use direct labor-hours as the base for applying overtiead cost to products. Compute the predetermined overhead rate. (Round your answer to 2 decimal places.)

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