Cabio Company manufactures two products, Product C and Product D. The company estimated it would incur $180,910 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		3,950	units			3,150	units
Direct labor-hours per unit		1.50	hours			1.60	hours
Direct materials cost per unit	$	13.10			$	25.50
Direct labor cost per unit	$	15.00			$	16.00

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	$	12,490	140		150		290
Purchase orders		76,140	880		1,220		2,100
Order size		92,280	5,925		5,040		10,965
Total	$	180,910

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.)