Ridgeland Inc. makes backpacks for large sporting goods chains that are sold under the customers' store brand names. The Accounting Department has identified the following overhead costs and cost drivers for next year:

Setup costs

$1,224,000

Number of setups

7,200

Ordering costs

325,000

Number of orders

65,000

Maintenance

2,300,000

Number of machine hours

80,000

Power

220,000

Number of kilowatt hours

440,00

Total predicted direct labor hours for next year is 52,000. The following data are for two recently completed jobs:

Job 201

Job 202

Cost of direct materials

$15,500

$17,000

Cost of direct labor

$23,600

$67,300

Number of units completed

1,250

1,100

Number of direct labor hours

220

280

Number of setups

15

19

Number of orders

21

42

Number of machine hours

460

360

Number of kilowatt hours

200

300

a. Determine the unit cost for each job using a traditional plantwide overhead rate based on direct labor hours.
Round cost per unit answers to two decimal places when applicable.

	Job 201	Job 202
Direct materials	15500	17000
Direct labor	23600	67300
Overhead	Answer	Answer
Total cost	$Answer	$Answer
Units produced	Answer	Answer
Cost per unit	$Answer	$Answer

b. Determine the unit cost for each job using ABC. Round cost per unit answers to two decimal places when applicable.

	Job 201	Job 202
Direct materials	15500	17000
Direct labor	Answer	Answer
Setup cost	Answer	Answer
Ordering costs	Answer	Answer
Maintenance costs	Answer	Answer
Power	Answer	Answer
Total job costs	$Answer	$Answer
Units produced	Answer	Answer
Cost per unit	$Answer	$Answer

Answer rating: 100% (QA)

a Job 201 Job 202 Direct materials 8000 9500 Direct labor 1... View the full answer