Direct material Direct labour totally produced

Standard model $15/unit $20/dlh 800 units

De Luxe model $15,000 (all) $30/dlh 500 units

Calculate the full costs of both models under traditional and ABC system

Determine the selling price for the De Luxe model, if profit margin on selling price (markup on sales) is 25% for Traditional and ABC costing. Compare and comment.

18) Cocoa Pet Corporation manufactures two models of grooming stations, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Direct Labor Hours Product Standard Deluxe Number of Setups 3 7 Number of Components 30 50 650 150 Overhead costs $20,000 $60,000 Assume a traditional costing system applies the $80,000 of overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model? a. Assume an activity-based costing system is used and that the number of setups and the number of components are identified as the activity-cost drivers for overhead. What is the total amount of overhead costs assigned to the standard model? c. e. Explain the difference between the costs obtained from the traditional costing system and the ABC system. Which system provides a better estimate of costs? Why