Kunkel company makes two products and uses a conventional costing predetermine overhead rate is computed based on direct labor hours. Data for the two products for the upcoming year follow:

compute the unit product costs for the two products using the proposed ABC system

1. Unit product cost under conventional system:
2. Unit product cost under ABC

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