Reference no: EM132754458

Harrison Company makes two products and uses a conventional costing system in which a single plantwide, predetermined overhead rate is computed based on direct labour-hours. These products are customized to some degree for specific customers. Data for the two products for the upcoming year follow:
                                              Rascon                  Parcel

Direct materials cost per unit       $29.50                  $23.50

Direct labour cost per unit             $24.30                $4.80

Direct labour-hours per unit             0.90                   0.30

Number of units produced              29,000                119,000

Required:

Problem 1. The company's manufacturing overhead costs for the year are expected to be $861,000. Using the company's traditional costing system, compute the unit product costs for the two products. (Do not round intermediate calculations and round your final answers to 2 decimal places.)