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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: Model N 800 XL Model N 500 Direct Labor- Hours per Unit 3.5 1.2 Activity Cost Pool Machine setups Special processing General factory Annual Production 4,500 units 12,500 units Activity Measure Number of setups Machine-hours Direct labor-hours 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: Activity Measure Number of setups Machine-hours Direct labor-hours Model N 800 XL 120 15,000 15,750 Total Direct Labor-Hours K 15,750 15,000 30,750 Estimated Overhead Cost $ 420,000 195,000 1,230,000 $ 1,845,000 Expected Activity Model N 500 300 10 15,000 Total 420 15,000 30,750

Puget World, Incorporated, manufactures two models of television sets, the N 800XL 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 N500 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 800L 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: Required: Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. . Compute the predetermined overhead rate. b. Compute 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. Compute the unit product cost of each model. (found your answers to 2 decimal places.) 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. 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, Compute the predetermined overhead rate. (Round your answer to 2 decimat places.)

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