RABBIT SNEAKERS is a company dedicated to the production and marketing of sneakers for: women, men and

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Question:

RABBIT SNEAKERS is a company dedicated to the production and marketing of sneakers for: women, men and children, known as Z-D, Z-C and Z-N.
All its sales are made in its country and currently the company has 160 workers. Sales last year were $1.2 million Since its inception in 2010, the company uses two costing systems. These two costing systems are Absorption Costing and Direct Costing.

The company assigns its CIF (Indirect Manufacturing Costs) based on the MOD Hours consumed in the manufacturing of each shoe. The following data is available for the last accounting year (2017):

Data on units produced, sold and cost elements (See Table N. 1).
TABLE N. 1

CONCEPT

Z-D

Z-C

Z-N

TOTALS

Units produced and sold

20 pairs

50 pairs

10 pairs

Direct Materials Cost per unit

$5

$20

$50

MOD cost per unit

$5

$15

$10

CIF

$2,000

MOD Hours/Unit

10 hours

15 hours

5 hours

1,000 Hours

The CIF amount to $2000 and have been incurred by three Cost Centers, which are Engineering, Manufacturing and Warehouse, according to data shown in the following Table No. 2.
TABLE N. 2

COST CENTER

CIF

1. ENGINEER

$300

2. MANUFACTURING

$1,050

3. WAREHOUSE AND DISPATCH

$650

CIF Cost Driver Activities are shown in table N. 3.
TABLE N. 3

ACTIVITIES

INDUCTORS

CIF

1. DESIGN MODELS

Number of design orders

$300

2. PREPARE EQUIPMENT

Number of hours of preparation

$150

3. MACHINE

Number of Machine Hours

$900

4. RECEIVE MATERIALS

Number of receptions

$400

5 DISPATCH PRODUCTS

Number of shipments to customers

$250

TOTAL CIF

$2,000

In addition, data has been collected regarding the number of Inductors (Activity Measurement) of each Activity, which is presented in Table No. 4 below:
TABLE N. 4

CONCEPT

Z-D

Z-C

Z-N

A. Number of Design Orders.

2

3

1

B. Number of Preparation Hours

5

5

5

C. Number of Machine Hours

twenty

30

10

D. Number of Receptions.

5

10

5

E. Number of Shipments to Customers

5

fifteen

5

It is requested:

Cost the products using the Absorption System and the Direct System.
Make Comparative Tables of the results obtained with the application of each Costing System, identifying the Utilities:

Unit Cost of Finished Products.
CIF per unit of Product.
Total CIF by Product.