Bullie Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, D31X and U75X, about which it has provided the following data:

D31X U75X Direct materials per unit $32.40 $50.10 Direct labor per unit $1.80 $24.60 Direct labor-hours per unit 0.15 2.30 Annual production (units) 45,000 20,000

The company's estimated total manufacturing overhead for the year is $1,650,147 and the company's estimated total direct labor-hours for the year is 45,000.

The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:

Activities and Activity Measures Estimated Overhead Cost Assembling products (DLHs) $200,000 Preparing batches (batches) 300,100 Axial milling (MHs) 1,150,047 Total $1,650,147

D31X U75X Total Assembling products 6,500 39,500 45,000 Preparing batches 760 1,395 2,155 Axial milling 1,840 1,215 3,055

Required:

a. Determine the manufacturing overhead cost per unit of each of the company's two products under the traditional costing system. b. Determine the manufacturing overhead cost per unit of each of the company's two products under activity-based costing system.