Cabat Company manufactures two products, Product C and Product D. The company estimated it would incur $189,910 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor-hours. Data concerning the current periods operations appear below:

	Product C			Product D
Estimated volume		4,400	units			3,600	units
Direct labor-hours per unit		2.40	hours			2.00	hour
Direct materials cost per unit	$	17.60			$	30.90
Direct labor cost per unit	$	15.60			$	12.00

Requried:
a-1.	Compute the predetermined overhead rate under the current method. (Round your answer to 2 decimal places.)

Predertemined overhead rate

____ per DLH

a-2.	Determine the unit product cost of each product for the current year. (Do not round your intermediate calculations. Round your final answer to 2 decimal places.)

	Product C	Prodcut D
Unit Product Cost

b.

The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below:

Activity Cost Pools	Estimated Overhead Costs		Expected Activity
			Product C	Product D	Total
Machine setups	$	13,390	230	240	470
Purchase orders		78,840	1,060	1,400	2,460
General factory		97,680	10,560	7,200	17,760
Total	$	189,910

Determine the unit product cost of each product for the current period using the activity-based costing approach. (Round your intermediate calculations and final answers to 2 decimal places.)

	Product C	Prodcut D
Unit Product Cost