The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below.

		Estimated
	Activity	Overhead	Expected Activity
	Cost Pool	Costs	Product C	Product D	Total
	Machine setups	$ 13,630	130	160	290
	Purchase orders	85,750	750	1,000	1,750
	General factory	67,760	4,000	2,160	6,160
		$167,140

Determine the unit product cost of each product for the current period using the activity-based costing approach.

Which cost method would you use to manage this business and why?