Look

Look 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, about which it has provided the following data:

149L B26W
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 and Activity Measures Estimated
Overhead Cost
Supporting direct labor (DLHs) $ 444,920
Setting up machines (setups) 810,852
Parts admission (part types) 1,741,680
Total $ 2,997,452
Activities 149L B26W Total
Supporting direct labor 21,560 42,000 63,560
Setting up machines 827 3,310 4,137
Parts admission 2,060 1,630 3,690

Required:
a.┬áDetermine 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 $ $
b.┬áDetermine 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.)
149L B26W
Unit product cost $ $