Refer to the data in exercises 7-7 and 7-9. Eric Parker found that the budget included production of 500 units of Component 3F5 and 5,000 units of Component T76.

Required

a. Calculate the overhead cost per unit of Component 3F5 and Component T76 under traditional costing using machine hours as the overhead application base.

b. Calculate the overhead cost per unit of Component 3F5 and Component T76 under activity-based costing.