12. Under the traditional volume-based product-costing system, what would be the per unit cost for Model I if machine time is used as the allocation base? a. $200.56 b. $209.00 c. $302.00 d. $224.53 13. Under the traditional volume-based product-costing system, what would be the per unit cost for Model III if direct materials (in dollars) are used as the allocation base? a. \$191.81 b. $317.25 c. $126.00 d. $92.72 14. Under the ABC system, what would be the per unit cost for Model III if direct materials (in dollars) are used as the allocation base of machinery costs? a. $390.85 b. $334.45 c. $344.64 d. $401.04 15. Under the ABC system, what would be the per unit cost for Model III if direct labour hours are used as the allocation bases for all activity cost pools? a. $390.85 b. $334.45 c. $344.64 d. $126.00 16. Under the ABC system, what would be the per unit cost for Model III if machine hours are used as the allocation bases for all activity cost pools? a. $390.85 b. $241.12 c. $344.64 d. $126.00 Traditional, Volume-Based Product-Costing System - Aerotech produces three complex printed circuit boards referred to as Mode I, Mode II, and Mode III. - The following information is obtained from company records: Traditional, Volume-Based Product-Costing System I Additional information includes: Manufacturing overhead is determined as follows Traditional, Volume-Based Product-Costing System Traditional, Volume-Based Product-Costing System Nith these product costs, Aerotech established target selling prices (Cost 125% ). Activity Based Costing System (ABC) ABC systems follow a two-stage procedure to assign overhead costs to products. Stage One Identify significant activities and assign overhead costs to each activity in accordance with the cost of resources used by the activity. Stage Two Identify cost drivers appropriate to each activity and allocate overhead costs from each activity cost pool to each product line in proportion to the amount of the cost driver 8 consumed by the product line. Note: Five cost pools at the batch level STAGE ONE - MACHINERY COST 31 STAGE TWO - MACHINERY COST \begin{tabular}{|c|} \hline \begin{tabular}{c} Calculate \\ the pool \\ rate \end{tabular} \\ \hline \\ Cost \\ Assignment \end{tabular} 32 STAGE ONE - SETUP COST STAGE TWO - SETUP COST \begin{tabular}{|c|} \hline \begin{tabular}{c} Calculate \\ the pool \\ rate \end{tabular} \\ \hline \\ Cost \\ Assignment \\ \hline \end{tabular} 34 STARF ONF - FNCINEFDING COST STAGE TWO - ENGINEERING COST STAGE ONE - FACILITY COST \begin{tabular}{|c|c|c|} \hline \begin{tabular}{c} Various overhead \\ costs related \\ to general \\ operations \end{tabular} & Plant depr. & Property taxes \\ \hline \begin{tabular}{c} Activity \\ cost \\ pool \end{tabular} & Plant mgmt. & Insurance \\ \hline \end{tabular} 37 STAGE TWO - FACILITY COST \begin{tabular}{|c|} \hline \begin{tabular}{c} Calculate \\ the pool \\ rate \end{tabular} \\ \hline \\ Cost \\ Assignment \\ \hline \end{tabular} Other Overhead Costs Product Cost from ABC These are the new product costs when Aerotech uses ABC. Distorted Product Costs Both original and ABC target selling prices are based on (Cost 125%). The selling price of Mode I and Itare reduced and the selling price for Mode III is increased. [$209.001.25] [$183.441.2