activity resources unit level unit level cosst drive base activity cost in t

activity resources unit level

unit level cosst drive base activity cost in typical month activity volume

1-1aquired and used direct material product A nu of unit $50000 1000000 unit

1-2 aquired use direct labor product a nu of hours work d labor 20000 2000 D L H

1-3aqired used D material product B nu of unit produce 80000 800000 unit

1-4 aquired u sed D L product B nu of hours work d labor 40000 2000 DLH

batch level

2-1quality control nu of batches 30000 100 batches

product level

3-1product level advertising nu of promotion 100000 100 promotion

3-2provied product level record nu of product 20000 2 products

customer level

4-1take customer product order nu of customer order 40000 2000 customer order

4-2deal with customer complain nu of complain 20000 1000 complain

facility level

5-1supervise direct labor amount of D L costs 12000 $ 60000 for activity 1-2 and

1-4 suppervision cost20% of

D L cost

5-2use main building nu of squer feet 40000 10000SQ feet

the company wants to compute the total cost and unit cost of each product

product A product B

1-1 and 1-3 direct Material 800000 unit 900000 unit

1-2 and 1-4 D L 1600 H 2100 H

2-1 Q control batches 50 batches 40 batches

3-1product level advertising 50 promotion 40

3-2provied product level record 1 product 1 product

4-1take customer product order 800 customer order 900

4-2deal with customer complain 600 complaits 300

5-1supervise direct labor $16000 $42000

5-2use main building 6000 Sq ft 3000Sq ft

compute the cost drive rate for each cost drive base

use ABC to compute each of the two product givin the activity level for july compute total cost and unit cost for each product

assume the company traditiona costing system had assigned overhead cost rate at rate $0.10 per unit of output plus $ 20.00 per D L H overhead cost are the sum
of the batch level product level customer level and facility level costs using traditional costing approch compute the cost of each product (including D
material and D L coss) compute the total cost and unit cost for each product for july

do the uit cost of the two product computed under ABC and traditional costing differ if yes what xauses the differences