Harrison Company makes two products and uses a traditionalcosting system in which a single plantwide predetermined overheadrate is computed based on direct labor-hours. Data for the twoproducts for the upcoming year follow:

	Rascon		Parcel
Direct materialscost per unit	$	15	$	7
Direct labor costper unit	$	2.90	$	3.80
Direct labor-hoursper unit		.20		.25
Number of unitsproduced		11,000		47,000

These products are customized to some degree for specificcustomers.

    

Required:
1.	The company's manufacturing overhead costs for the year areexpected to be $376,650. Using the company's traditional costingsystem, compute the unit product costs for the two products.(Round your intermediate calculations and final answers to2 decimal places.)

       

2.

Management is considering an activity-based absorption costingsystem in which half of the overhead would continue to be allocatedon the basis of direct labor-hours and half would be allocated onthe basis of engineering design time. This time is expected to bedistributed as follows during the upcoming year:

	Rascon	Parcel	Total
Engineering design time(in hours)	4,300	4,300	8,600

Compute the unit product costs for the two products using theproposed activity-based absorption costing system. (Roundyour intermediate calculations and final answers to 2 decimalplaces.)