Required:
Using the data from exercise 7, prepare a reconciliation of the overhead costs reported for product 456 by the two costing systems. Begin the reconciliation with the amount of overhead allocated by the traditional system. Use columns for total and per-unit costs.
Exercise 7
Thompson Company manufactures a variety of high- and low-volume products, including product 456, in its Westchester Plant. The following information pertains to the most recent year:

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Total for Products 456 Total for Unit-level overhead Batch-level overhead Product-level overhead Plant-level overhead Total overhead Westchester $ 200,000 300,000 500,000 400,000 1,400,000 Units produced Direct labor hours Machine hours.. 5,000 20,000 10,000 120 100 Setups Setup hours.... Design changes Design hours 4,000