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 $ 12.30 $ 22.20 Direct labor cost per unit $ 5.80 $ 2.90 Direct labor-hours per unit 0.51 0.26 Number of units produced 28,000 85,000

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 $876,758. Using the company's conventional costing system, compute the unit product costs for the two products. (Do not round intermediate calculation. Round your final answers to 2 decimal places.)

MerconWurcon Unit product cost $ $

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:

MerconWurcon Total Engineering design time (in hours) 3,200 3,600 6,800

Compute the unit product costs for the two products using the proposed ABC system. (Round your final answers to 2 decimal places.)

MerconWurcon Unit product cost $ $