Texas Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labour-hours (DLHs). The company has two products, W82R and L48S, about which it has provided the following data:

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

W82RL48SDirect Material per Unit$11.50$ 62.90Direct Labour per Unit$2.00$13.00Direct Labout Hours per unit0.21.3Annual Production45,00010,000

The Company's estimated total manufacturing overhead for the year is $1,521,960 and the company's estimated total direct labour-hours for the year is 22,000.

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

ActivitiesW82RL48STotalSupport direct labour9,00013,00022,000Setting up Machines8143741,188Parts Administration9241,0121,936

Activities & DriversEstimated OH CostSupport direct labour (DLH)352,000Setting up Machines (setups)201,960Parts Administration (part types)968,000Total1,521,960

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