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$\backslash$table$[[,,$Annual,Total Direct$],[$Product$,$Direct Labor$-$Hours,Production,Labor$-$Hours$],[$X$200,0\mathrm{.}2$ DLHs per unit,$24,000$ units,$4,800$ DLHs$],[$X$99,0\mathrm{.}4$ DLHs per unit,$49,000$ units,$19,600$ DLHs$]]$

Additional information about the company follows:

a$.$ Model $x200$ requires $$37$ in direct materials per unit, and model $99$ requires $$30.$

b$.$ The direct labor workers are paid $$10$ per hour.

c$.$ The company has always used direct labor$-$hours as the allocation base for applying manufacturing overhead cost to products.

d$.$ Model X$200$ is more complex to manufacture than model X$99$ and requires the use of special equipment.

e$.$ Because of the special work required in $($d$)$ above, the company is considering the use of activity$-$based absorption costing to apply manufacturing overhead cost to products. Three activity cost pools have been identified as follows:

$\backslash$table$[[\backslash$table$[[$Activity Cost Pool$],[$Machine setups$],[$Special processing$],[$General factory$]],$Activity Measure,$\backslash$table$[[$Estimated$],[$Total Cost$]],$Estimated Total,Activity$],[$X$200,$X$99,$Total$],[$Number of setups,$$215,600,112,168,280],[$Machine$-$hours,$362,600,980,0,980],[$Direct labor$-$hours,$976,000,4,800,19,600,24,400],[,$$$1,554,200,,,]]$

Required:

Assume that the company continues to use direct labor$-$hours as the allocation base for applying overhead cost to products.

a$.$ Compute the plantwide predetermined overhead rate.

b$.$ Compute the unit product cost of each model.

Assume that the company decides to use activity$-$based absorption costing to apply overhead cost to products.

a$.$ Compute the activity rate for each activity cost pool and determine the amount of overhead cost that would be applied to each model using the activity$-$based approach.

b$.$ Compute the unit product cost of each model.

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