Cummings Company manufactures two products, Product C and Product D. The company estimated it would incur $190,910 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		4,450	units			3,650	units
Direct labor-hours per unit		2.50	hours			2.60	hours
Direct materials cost per unit	$	18.10			$	31.50
Direct labor cost per unit	$	25.00			$	26.00

Required (be sure to answer all 3 questions):

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 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	$	13,490	240		250		490
Purchase orders		79,140	1,080		1,420		2,500
Order size		98,280	11,125		9,490		20,615
Total	$	190,910

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.)