Transcribed Image Text
In: AccountingHarrison Company makes two products and uses a traditionalcosting system in which a single plantwide...Harrison Company makes two products and uses a traditionalcosting system in which a single plantwide predetermined overheadrate is computed based on direct labor-hours. Data for the twoproducts for the upcoming year follow:RasconParcel Direct materialscost per unit$15$7 Direct labor costper unit$2.90$3.80 Direct labor-hoursper unit.20.25 Number of unitsproduced11,00047,000These products are customized to some degree for specificcustomers. Required:1.The company's manufacturing overhead costs for the year areexpected to be $376,650. Using the company's traditional costingsystem, compute the unit product costs for the two products.(Round your intermediate calculations and final answers to2 decimal places.) 2.Management is considering an activity-based absorption costingsystem in which half of the overhead would continue to be allocatedon the basis of direct labor-hours and half would be allocated onthe basis of engineering design time. This time is expected to bedistributed as follows during the upcoming year:RasconParcelTotal Engineering design time(in hours)4,3004,3008,600Compute the unit product costs for the two products using theproposed activity-based absorption costing system. (Roundyour intermediate calculations and final answers to 2 decimalplaces.)