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Harrison Company makes two products and uses a traditional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor

Harrison Company makes two products and uses a traditional 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:
These products are customized to some degree for specific customers.
Required:
The company's manufacturing overhead costs for the year are expected to be $665,500. Using the company's traditional costing
system, compute the unit product costs for the two products.
Management is considering an activity-based absorption costing system in which half of the overhead would continue to be
allocated based on direct labor-hours and half would be allocated based on engineering design time. This time is expected to be
distributed as follows during the upcoming year:
Compute the unit product costs for the two products using the proposed activity-based absorption costing system.
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The company's manufacturing overhead costs for the year are expected to be $665,500. Using the company's traditional
costing system, compute the unit product costs for the two products. (Round your intermediate calculations and final answers
to 2 decimal places.)
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