Harrison Company makes two products and uses a traditional oosting system in which a single plantwide predetermined overhead rate is computed based…

Please compute the unit product costs for Rascon and Parcel.

Harrison Company makes two products and uses a traditional oosting system in which a single plantwide predetermined overheadrate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Rasuon ParcelDirect materials cost per unit $ 13 S 5Direct labor cost per unit $ 2.90 $ 4.00Direct labor-hours per unit .110 .115Nmnher of units produced 16,000 44,000 These products are customized to some degree for specific customers. Required: ‘I. The company’s manufacturing overhead costs for the year are expected to be $628,800. Using the company’s traditional costingsystem. compute the unit product costs for the two products. 2. Management is considering an activity-based absorption costing system in which half of the overhead would continue to beallocated based on direct labor-hours and half would be allocated based on engineering design time. This time is expected to bedistributed as follows during the upcoming year: Rascal: Parcel TotalEngineering design time [in hours} I! , 600 4 , 60 U 9 .. 2 CID Compute the unit product costs for the two products using the proposed activity-based absorption oosting system.

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