Ireland Company manufactures two products, Product C and Product D. The company estimated it would incur $160,790 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labour hours. Data concerning the current period's operations appear below:

	Product C	Product D
Estimate volume	3400 units	4800 units
Direct labour hours per unit	1.40 hours	1.90 hours
Direct materials cost per unit	$7.40	$12.70
Direct labour cost per unit	$14.00	$19.00

Required: a) Compute the predetermined overhead rate under the current method, and determine the unit product cost of each product for the current year. (according to 8 marker) b) The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labour hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below:

Activity Cost Pool	Estimated overhead cost	Expected activity for Product C	Expected Activity for Product D
Machine setups	$12,190	80	150
Purchase orders	$79,200	730	920
General Factory	$69,400	4,760	9,120
Total	$160,790

Determine the unit product cost of each product for the current period using the activity-based costing approach. (according to 12 marker)

[This question is be done according to 20 marks in total]