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: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Mercon $ 14.00 $ 8.00 Wurcon $ 12.00 Number of units produced 1.50 1,000 $ 9.00 11.25 2,000 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 $960,000. 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: Engineering design time (in hours) Mercon 4,000 Wurcon 4,000 Total 8,000 Compute the unit product costs for the two products using the proposed ABC system. (For all requirements, do not round intermediate calculations. Round your final answers to 2 decimal places.) 1. Unit product cost under conventional system 2. Unit product cost under ABC system Mercon Wurcon Required information [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor- Hours per unit Annual Production Rims Posts 0.30 21,000 units 0.50 74,000 units Additional information about the company follows: a. Rims require $15 in direct materials per unit, and Posts require $12. b. The direct labor wage rate is $16 per hour. c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Estimated Activity Estimated Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Overhead Cost Rims $ 37,000 $ 146,520 120 4,000 Posts 280 0 Total 400 4,000 Direct labor-hours $ 672,000 6,300 37,000 43,300 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Machine setups Special processing General factory Activity Rate per setup per MH per DLH