A manufacturing plant you consult at makes two products (ADA and ETH) and is considering switching to ABC. The following information is available:
	ADA	ETH
Direct materials per unit	$                      35.25	$     25.55
Direct labor per unit	$                      16.10	$     39.10
Direct labor-hours per unit	0.9	1.8
Annual production	35,000	15,000
Estimated total manufacturing overhead			$           1,727,600
Estimated total direct labor-hours			28000
Activities and Activity Measures
Assembling products (DLHs)	$                708,000
Preparing batches (batches)	$                297,600
Axial milling (MHs)	$                722,000
Total	$           1,727,600
	ADA	ETH	Total
Assembling products	19,500	15,000	34,500
Preparing batches	852	1,564	2,416
Axial milling	256	985	1,241
Calculate the manufacturing overhead cost per unit of each product under the
a) using traditional costing system.
b) using activity-based costing system.

Answer rating: 100% (QA)

To calculate the manufacturing overhead cost per unit of each product under the traditional costing system and activitybased costing system we need to ... View the full answer