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EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product W. Product W is the more complex of the two products, requiring 3 hours of direct labor time per unit to manufacture compared to 1 hour of direct labor time for Product S. Product W is produced on an automated production line. Overhead is currently assigned to the products on the basis of direct-labor-hours. The company estimated it would incur $838,366 in manufacturing overhead costs and produce 18,400 units of Product W and 92.000 units of Product S during the current year. Unit cost for materials and direct labor are: Products $ 11 Product W $ 32 Direct material Direct labor 16 Required: a-1. Compute the predetermined overhead rate under the current method of allocation a-2. Determine the unit product cost of each product for the current year. b. The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below: Products Activity Cost Pool Machine setups required Purchase orders issued Machine-hour required Maintenance requests issued Total Cost $310, 300 56.834 198,660 272,572 $ 838,366 Total Activity Product W 1. 30 192 10, 750 898 Total 2.900 785 18.060 1.642 Using the data above and an activity based costing approach, determine the unit product cost of each product for the current year, Complete this question by entering your answers in the tabs below. Reg A1 Req A2 Req B

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