Exercise 2A-2 Activity-Based Absorption Costing as an Alternative to Traditional Product Costing (LO2- 5) Harrison Company makes two products and uses a traditional 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: Rascon Parcel Direct materials cost per unit $ 13.00 $ 5.00 Direct labor cost per unit $ 2.80 $ 3.88 Direct Labor-hours per unit Number of units produced .40 11,000 .45 46,000 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 $677,700. Using the company's traditional costing system, 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 be allocated based on direct labor-hours and half would be allocated based on engineering design time. This time is expected to be distributed as follows during the upcoming year: Rascon Parcel Total Engineering design time (in hours) 5,000 5,000 10.000 Required: 1. The company's manufacturing overhead costs for the year are expected to be $677,700. Using the company's traditional costing system, 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 be allocated based on direct labor-hours and half would be allocated based on engineering design time. This time is expected to be distributed as follows during the upcoming year: Rascon Parcel Total Engineering design tine (in hours) 5,000 5,000 10,000 Compute the unit product costs for the two products using the proposed activity-based absorption costing system. Complete this question by entering your answers in the tabs below. Required: Required 2 es The company's manufacturing overhead costs for the year are expected to be $677,700. Using the company's traditional costing system, compute the unit product costs for the two products. (Round your intermediate calculations and final answers to 2 decimal places.) Rascon Parcel Unit product cost Required 2 > Required: 1. The company's manufacturing overhead costs for the year are expected to be $677700. Using the company's traditional costing system, 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 be allocated based on direct labor-hours and half would be allocated based on engineering design time. This time is expected to be distributed as follows during the upcoming year: Rascon Parcel Total Engineering design time in hours) 5,000 5,800 10,000 Compute the unit product costs for the two products using the proposed activity-based absorption costing system Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the unit product costs for the two products using the proposed activity-based absorption costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Rascon Parcel Unit product cost