Question: Comparing Two Products under Traditional and Activity-Based Costing Compare two projects under development by the same company. The following are a few aspects of each
Comparing Two Products under Traditional and Activity-Based Costing Compare two projects under development by the same company. The following are a few aspects of each products development process relevant to costs.
Product A
Requires 3840 hours of testing
Requires 5390 units of computing power
Requires 20 developer hours to implement
Product B
Requires 960 hours of testing
Requires 2310 units of computing power
Requires 80 developer hours to implement
| Cost Items | Cost of Each Activity |
| Testing: | $30,800 |
| Computing power: | $46,200 |
| Developer hourly cost: | $11 per hour |
| Activity-Based Costing Using the data above for products A and B, calculate the costs using activity-based costing. Allocate the costs of testing, computing, and development based on the rates of activity consumed by each product's development process. If required, in your computations, round per unit costs to the nearest cent. Round your final answers to the nearest dollar.
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| Product A Testing cost Computing cost Developer cost Total cost Product B Testing cost Computing cost Developer cost Total cost | ||||||||||
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