I just want to have a check figure, thanks.

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:

MerconWurcon Direct materials cost per unit$10.00$8.00Direct labor cost per unit$3.00$3.75Direct labor-hours per unit0.20.25Number of units produced10,00040,000

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 $336,000. Using the company's conventional costing system, compute the unit product costs for the two products.

2. Management is considering an activity-based costing system in which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year:

MerconWurconTotalEngineering design time (in hours)4,0004,0008,000

Compute the unit product costs for the two products using the proposed ABC system.