Data concerning Cranur Architects Corporation's two major business lines are given below: Commercial $ 8.00 $...

 

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Data concerning Cranur Architects Corporation's two major business lines are given below: Commercial $ 8.00 $ Residential $ 5.60 $36.00 0.075 DLHS Direct materials per square metre Direct labour per square metre Direct labour-hours per square metre Estimated annual output Estimated total architecture department overhead Estimated total direct labour-hours 48 0.1 DLHS The company has a traditional costing system in which architecture department overhead is applied to units (square metres of architectural drawings) based on direct labour-hours. Data concerning architecture department overhead and direct labour-hours for the upcoming year appear below: Unit cost 40,000 m² Commercial Residential 280,000 m² Required: 1. Determine the unit costs of the Commercial and Residential products under the company's traditional costing system. (Round your answers to 2 decimal places.) $1,340,000 25,000 DLHS 2. The company is considering replacing its traditional costing system for determining unit product costs for external reports with an ABC system. The ABC system would have the following three activity cost pools: Activities and Activity Measures Supporting direct labour (direct labour-hours) Drawing software modifications (changes) Quality review and technical checks (tests) Total service department overhead cost Unit cost Commercial Expected Activity Determine the unit costs (cost per square metre of architectural drawings) of the Commercial and Residential lines of business under the ABC system. (Round your answers to 2 decimal places.) Residential Estimated Overhead Cost Commercial Residential $1,200,000 120,000 20,000 4,000 100 80 21,000 25 20 $1,340,000 Total 25,000 125 100 Data concerning Cranur Architects Corporation's two major business lines are given below: Commercial $ 8.00 $ Residential $ 5.60 $36.00 0.075 DLHS Direct materials per square metre Direct labour per square metre Direct labour-hours per square metre Estimated annual output Estimated total architecture department overhead Estimated total direct labour-hours 48 0.1 DLHS The company has a traditional costing system in which architecture department overhead is applied to units (square metres of architectural drawings) based on direct labour-hours. Data concerning architecture department overhead and direct labour-hours for the upcoming year appear below: Unit cost 40,000 m² Commercial Residential 280,000 m² Required: 1. Determine the unit costs of the Commercial and Residential products under the company's traditional costing system. (Round your answers to 2 decimal places.) $1,340,000 25,000 DLHS 2. The company is considering replacing its traditional costing system for determining unit product costs for external reports with an ABC system. The ABC system would have the following three activity cost pools: Activities and Activity Measures Supporting direct labour (direct labour-hours) Drawing software modifications (changes) Quality review and technical checks (tests) Total service department overhead cost Unit cost Commercial Expected Activity Determine the unit costs (cost per square metre of architectural drawings) of the Commercial and Residential lines of business under the ABC system. (Round your answers to 2 decimal places.) Residential Estimated Overhead Cost Commercial Residential $1,200,000 120,000 20,000 4,000 100 80 21,000 25 20 $1,340,000 Total 25,000 125 100

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