Makes two products and uses a traditional costing system in which a single plantwide predetermined overhead rate is computed on direct labour hours. Data for the two products for the upcoming year follow:

Direct Materials cost per unit	28.00	10.00
Direct labour Cost per unit	5	7.4
Direct labour hours per unit	1	1.1
Number of units produced	38000	90000

1. The company's manufacturing overhead costs for the year are expected to be 1644000. Using the company's traditional costing system, compute the unit product costs for the 2 products. Compute the Unit product cost for both.

2. They are considering an activity-based absorption costing system in which half of the overhead would continue based on the direct labour hours and a half would be allocated based on engineering design time. Time is distributed as follow. Compute the unit product costs based on the absorption costing method.

Engineering design time in hours	9600	9600	19200