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

	Rascon		Parcel
Direct materials cost per unit	$	12	$	5
Direct labor cost per unit	$	3.00	$	3.80
Direct labor-hours per unit		.40		.45
Number of units produced		11,000		44,000

These products are customized to some degree for specific customers.

Required:
1.	The company's manufacturing overhead costs for the year are expected to be $701,800. Using the company's traditional costing system, compute the unit product costs for the two products. (Round your intermediate calculations and final answers to 2 decimal places.)

2.

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

	Rascon	Parcel	Total
Engineering design time (in hours)	4,800	4,800	9,600

Compute the unit product costs for the two products using the proposed activity-based absorption costing system. (Round your intermediate calculations and final answers to 2 decimal places.)

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