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:

These products are customized to some degree for specific customers.

Required:

The company's manufacturing overhead costs for the year are expected to be $$720,000.$ Using the company's conventional costing system, compute the unit product costs for the two

products.

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:

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

Note: For all requirements, do not round intermediate calculations. Round your final answers to $2$ decimal places.