Cummings Company manufactures two products, Product C and Product D. The company estimated it would incur $179,910 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		3,900	units			3,100	units
Direct labor-hours per unit		1.40	hours			1.50	hour
Direct materials cost per unit	$	12.60			$	24.90
Direct labor cost per unit	$	14.00			$	15.00

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	$	12,390	130		140		270
Purchase orders		75,840	860		1,200		2,060
Order size		91,680	5,460		4,650		10,110
Total	$	179,910

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.)