Question

Harrison Company makes two products and uses a traditional costing system in which a single plantwide rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow Rascon Parcel 11 $ Direct labor cost per unit Direct labor-hours per unit Number of units produced 2.70 % 3.90 50 19,880 48,806e 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 $969,300. 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: 4,280 4,200 8,480 Engineering design time (in hours) 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. 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.) Required 1 Required 2 Parcel Rascon 2 of 7 Next>

Answer 1