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Problem 7A-1 Activity-Based Costing Product Costs for External Reports [LO6] Data concerning Cranur Architects Corporation's two major business lines are given below: Direct materials per square metre Direct labour per square metre Commercial 8.00 $ Residential S 5.60 $36.00 48 Direct labour-hours per square metre 0.1 DLMS 0.075 DLHS Estimated annual output 40,000 280,000 2 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: Estimated total architecture department overhead Estimated total direct labour-hours $1,340,000 25,000 DLH 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.) Answer is complete but not entirely correct. Commercial Residential $ 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.) Answer is complete but not entirely correct. Commercial Residential Unit cost 61 36 44 28 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: Expected Activity Estimated Activities and Activity Measures Total Supporting direct labour (direct labour hours) Overhead Cost $1,200,000 120,000 Commercial Residential 4,000 21,000 Drawing software modifications (changes) 25,000 125 100 25 Quality review and technical checks (tests) 20,000 80 20 100 Total service department overhead cost $1,340,000 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.) 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: Expected Activity Estimated Activities and Activity Measures Residential Total Supporting direct labour (direct labour-hours) Overhead Cost Commercial $1,200,000 4,000 Drawing software modifications (changes) 21,000 25 25,000 125 120,000 100 Quality review and technical checks (tests) 20,000 80 20 100 Total service department overhead cost $1,340,000 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.) Commercial Residential Unit cost