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| Kuechle Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, I49L and | B26W |
| 149L | ||
| Direct materials per unit | 20.90 | 65.60 |
| Direct labor per unit | 21.30 | 56.30 |
| Direct labor-hours per unit | 0.70 | 2.40 |
| Annual production | 30,800 | 17,500 |
|
The company’s estimated total manufacturing overhead for the year is $2,997,452 and the company’s estimated total direct labor-hours for the year is 63,560. |
|
The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: |
| Activities | EstimatedOverhead Cost | |
| Supporting direct labor | 444,920 | |
| Setting up machines | 810,852 | |
| Parts admission | 1,741,680 | |
| Total | 2,997,452 |
| 21,560 | 42,000 | 63,560 |
| 827 | 3,310 | 4,137 |
| 2,060 | 1,630 | 3,690 |
| Required: |
|
Determine the unit product cost of each of the company’s two products under the traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places. Omit the “$” sign in your response.) |
| 149L | B26W |
| Unit product cost |
|
Determine the unit product cost of each of the company’s two products under activity-based costing system. (Round your intermediate calculations and final answers to 2 decimal places. Omit the “$” sign in your response.)
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