High Country Outfitters, 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:

Total predicted direct labor hours for next year is 60,000. The following data are for two recently completed jobs:

Required

a. Determine the unit cost for each job using a traditional company-wide overhead rate based on direct labor hours.

b. Determine the unit cost for each job using ABC. (Round answers to two decimal places.)

c. As the manager of High Country, is there additional information that you would want to help you evaluate the pricing and profitability of Jobs 201 and 202?

d. Assuming the company has been using the method required in part a, how should management react to the findings in part b?

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Overhead Item Setup costs Ordering costs Power.. Maintenance... Expected Costs Maximum Cost Driver Quantity $936,000 Number of setups.. 7,200 240,000 1,200,000 Number of orders 60,000 Number of machine hours 80,000 120,000 Number of kilowatt hours. 600,000