Come-On-In Manufacturing produces two types of entry doors: Deluxe and Standard Come-On-In compiled the following data for the two products:

	Standard Door	Deluxe Door
Estimated unit production	2,400 units	800 units
Direct material cost/unit	15	$40
Direct labor cost/unit	$40	50
Direct labor hours/unit	2 hours	1.5 hours

The company estimated it would incur $96,000 in manufacturing overhead costs during current period. Overhead currently is applied to the products on the basis of direct labor hours. Last year, Come-On-In Manufacturing purchased an expensive robotics system to allow for more decorative door products in the deluxe product line. The CFO suggested that an ABC analysis could be valuable to help evaluate a product mix and promotion strategy for the next sales campaign. She obtained the following ABC information for 2010:

Activity	Cost Driver	Cost	Total	Standard Door	Deluxe Door
Machine Setups	setups	$10,000	500	200	300
Machine Hours	hours	$56,000	5,600	2,500	3,100
Packing	shipments	$30,000	100	40	60

Total Overhead Costs: $96,000

1.) Using the current system, compute predetermined overhead rate and unit product cost of each type of door. 2.).Using ABC, compute ABC rate and unit product cost of each type of door 3.) Explain why there are difference in unit product costs under current system and under activity based costing