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	$ 14.00	$ 5.00
Direct labor cost per unit	$ 2.80	$ 3.60
Direct labor-hours per unit	0.50	0.55
Number of units produced	13,000	43,000

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 $904,500. 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)	4,500	4,500	9,000

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