. Cabalo Company manufactures two products, Product C and Product D. The company estimated it would incur $130,890 in manufacturing overhead costs during the current period. Overhead currently is assigned to the products on the basis of direct labor hours. Data concerning the current period's operations appear

Product C Product D

Estimated volume 400 units 1,200 units

Direct labor hours per unit 0.70 hour 1.20 hours

Direct materials cost per unit $10.70 $16.70

Direct labor cost per unit $11.20 $19.20

Compute the predetermined overhead rate under the current method,

and determine the unit product cost of each product for the current

year.

The company is considering using an activity-based costing

system to compute unit product costs instead of its traditional

system based on direct labor hours. The activity-based costing

system would use three activity centers. Data relating to

these activities for the current period are given below:

activity center	estimated overhead cost	expected activity total	expected activity product c	expected activity product D
machine setups	13,570	230	100	130
purchace orders	91520	2080	810	1270
general factory	25800	1720	280	1440
	130890

Determine the unit product cost of each product for the current period using the activity-based costing approach.