Cabio Company manufactures two products, Product C and Product D. The company estimated it would incur $187,910 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 4,300 units 3,500 units Direct labor-hours per unit 2.20 hours 2.30 hours Direct materials cost per unit $ 16.60 $ 29.70 Direct labor cost per unit $ 22.00 $ 23.00

Required:

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

a-2. Determine the unit product cost of each product for the current year. (Round your intermediate calculations and final answers to 2 decimal places.)

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: Estimated Expected Activity Activity Cost Pools Overhead Cost Product C Product D Total Machine setups $ 13,190 210 220 430 Purchase orders 78,240 1,020 1,360 2,380 Order size 96,480 9,460 8,050 17,510 Total $ 187,910 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.)