kunkel company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. data for the two products for the upcoming year follow: mercon wurcon direct materials cost per unit $ 10.00 $ 8.00 direct labor cost per unit $ 3.00 $ 3.75 direct labor-hours per unit 0.20 0.25 number of units produced 10,000 40,000 these products are customized to some degree for specific customers. required: 1. the company's manufacturing overhead costs for the year are expected to be $336,000. using the company's conventional costing system, compute the unit product costs for the two products. 2. management is considering an activity-based costing system in which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. this time is expected to be distributed as follows during the upcoming year: mercon wurcon total engineering design time (in hours) 4,000 4,000 8,000 compute the unit product costs for the two products using the proposed abc system.
