1. Stockin Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products.

Activity Pool	Department Costs	Cost driver
Binding	$ 247,500	Number of units
Printing	798,000	Machine hours
Product design	191,250	Change orders
General	608,250	None
Total overhead costs	$1,845,000

Other information is as follows:

	Tablets	Books
Units	75,000	18,750
Direct materials cost per unit	$4.00	$12.00
Direct labor cost per unit	$5.00	$10.00
Direct labor hours	30,000	15,000
Machine hours	150,000	112,500
Change orders	1,875	3,750

Required:

a. Determine the unit product cost for Tablets using the traditional costing system.

b. Determine the unit product cost for Tablets using the activity-based costing system.