1) determine the total cost per unit for each product using a) traditional costing method b) activity based costing method

Kitchen Products Ltd makes two types of food smokers: Gas and Electric. The company expects o manufacture 20,000 units of Gas smokers, which have a per-unit direct material cost of $15 nd a per-unit direct labour cost of $25. also expects to manufacture 50,000 units of Electric smokers, which have a per-unit material ost of $20 and a per-unit direct labour cost of $45. Currently the company is using the traditional costing method to allocate and apply the manufacturing overhead at a rate of $125 per machine hour. n a recent meeting, the management has recommended using the activity-based costing to etermine the product costs to enhance its competitive advantage in the market. The management accountant has identified three cost pools, and the overhead for each cost pool is s follows: Machine setups $ 5,000 Machine processing 6,000,000 Material requisitions 25,000 Total overhead $ 6,030,000 he cost driver for each cost pool and its expected activity is as follows: Gas Electric Total Machine setups 100 150 250 Machine hours 45,000 105,000 150,000 Parts requisitions 360 140 500