Hotwheels Manufacturing has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, Utility and Super, about which it has provided the following data:

	Utility					Super
Direct materials per unit	$	34.10					$	52.70
Direct labor per unit	$	16.10					$	39.10
Direct labor-hours per unit		0.70						1.70
Annual production		30,000						10,000

The company's estimated total manufacturing overhead for the year is $1,527,600 and the company's estimated total direct labor-hours for the year is 38,000.

The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:

Activities and Activity Measures	Estimated Overhead Cost
Assembling products (DLHs)		$	608,000
Preparing batches (batches)			197,600
Axial milling (MHs)			722,000
Total		$	1,527,600

	Utility	Super	Total
Assembling products	21,000	17,000	38,000
Preparing batches	456	1,520	1,976
Axial milling	570	874	1,444

Required:

a. Determine the manufacturing overhead cost per unit of each of the company's two products under the traditional costing system.

b. Determine the manufacturing overhead cost per unit of each of the company's two products under activity-based costing system.