EXERCISE $4-7$ Contrast ABC and Conventional Product Costs $$ LO$4-2,$ LO$4-3,$ LO$4-4$

Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor$-$hours. Data for the two products for the upcoming year follow:

$\backslash$table$[[,$Mercon,Wurcon$],[$Direct materials cost per unit,$$10\mathrm{.}00,$$$8\mathrm{.}00$