0%ose02:28:49eBookMcHelpCompute the activity rate (i.e., predetermined overhead rate) for each of the activity cost pools.Activity Cost PoolActivity RatePurchase ordersper orderRework requestsper requestper testProduct testingMachine relatedper MH3. Assume that actual activity is as expected for the year. Using activity-based costing, do the following:a. Determine the total amount of overhead that would be applied to each model for the year. (Do not round intermediate calculationsand round your final answers to nearest whole dollar amount.)DeluxeRegularTotal overhead costb. Compute the unit product cost for one unit of each model. (Do not round intermediate calculations and round your answers to 2decimal places.)DeluxeRegularUnit product costNext"Prex4 of 4S 0%pseSiegel Corporation manufactures a product available in both a deluxe and a regular model. The company has made the regular modelfor years; the deluxe model was introduced several years ago to capture a new segment of the market. Since the introduction of thedeluxe model, the company's profits have steadily declined, and management has become concerned about the accuracy of itscosting system. Sales of the deluxe model have been increasing rapidly.02:29:01Overhead is applied to products on the basis of direct labour-hours. At the beginning of the current year, management estimated that$2,219,800 in overhead costs would be incurred and the company would produce and sell 15,000 units of the deluxe model and53,800 units of the regular model. The deluxe model requires 2.7 hours of direct labour time per unit, and the regular model requires1.4 hours. Materials and labour costs follow:eBookDirect materials cost per unitDirect labour cost per hourDeluxe$19022Regular$9815Required:1. Compute the predetermined overhead rate using direct labour-hours as the basis for allocating overhead costs to products.Compute the unit product cost for one unit of each model. (Do not round intermediate calculations. Round your answers to 2decimal places.)Predetermined overhead rateper DLHUnit product cost of DeluxeUnit product cost of Regular2. An intern suggested that the company use activity-based costing to cost its products. A team was formed to investigate this idea,and it came back with the recommendation that four activity cost pools be used. These cost pools and their associated activitiesfollow:ActivityEstimatedOverheadCostDeluxeRegularTotalActivity Cost Pool andActivity MeasurePurchase orders (number of orders)Rework requests (number of requests)Product testing (number of tests)$ 163,2006001,100400141,600175,0002005,00012,500< PrevMcGrawHill4 of 4#Next >1,70060017,500

Name: 0%ose02:28:49eBookMcHelpCompute the activity rate (i.e., predetermine
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Description: 0%ose02:28:49eBookMcHelpCompute the activity rate (i.e., predetermined overhead rate) for each of the activity cost pools.Activity Cost PoolActivity RatePurchase ordersper orderRework requestsper requestper testProduct testingMachine relatedper MH3.