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:

Rascon Parcel

Direct materials cost per unit $ $12\mathrm{.}00$ $ $6\mathrm{.}00$

Direct labor cost per unit $ $2\mathrm{.}90$ $ $3\mathrm{.}70$

Direct labor$-$hours per unit $0\mathrm{.}400\mathrm{.}45$

Number of units produced $20,00048,000$

These products are customized to some degree for specific customers.

Required:

$1.$ The company's manufacturing overhead costs for the year are expected to be $$828,800.$ Using the company's traditional costing system, compute the unit product costs for the two products.

$2.$ 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:

Rascon Parcel Total

Engineering design time $($in hours$)4,5004,5009,000$

Compute the unit product costs for the two products using the proposed activity$-$based absorption costing system.