LP1 Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, B40W and C63J, about which it has provided the following data:

B40W C63J

Direct materials per unit P34.90 P63.70

Direct labor per unit P20.80 P62.40

Direct labor-hours per unit 0.80 2.40

Annual production 35,000 15,000

The company's estimated total manufacturing overhead for the year is P2,656,000 and the company's estimated total direct labor-hours for the year is 64,000.

The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:

Activities and Activity Measures Estimated Overhead Cost

Assembling products (DLHs) P1,216,000

Preparing batches (batches) 480,000

Milling (MHs) 960,000

TotalP2,656,000

Activities B40W C63J Total

Assembling products 28,000 36,000 64,000

Preparing batches 2,304 2,496 4,800

Milling 1,088 2,112 3,200

Required:

a. Determine the unit product cost of each of the company's two products under the traditional costing system.

b. Determine the unit product cost of each of the company's two products under activity-based costing system.