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Kunkel Company makes two products and uses a conventional costing system in which a single...

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Accounting

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:
These products are customized to some degree for specific customers.
Required:
The company's manufacturing overhead costs for the year are expected to be $1,280,000. Using the company's conventional
costing system, compute the unit product costs for the two products.
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:
Compute the unit product costs for the two products using the proposed ABC system.
Note: For all requirements, do not round intermediate calculations. Round your final answers to 2 decimal places.
Answer is complete but not entirely correct.
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