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13 eBook Rondeau, Incorporated, manufactures and sells two products: Product V9 and Product M6. Data concerning the expected production of each product and the
13 eBook Rondeau, Incorporated, manufactures and sells two products: Product V9 and Product M6. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product V9 Product M6 Total direct labor-hours Expected Direct Labor-Hours Production 440 540 Per Unit 10.4 7.4 Total Direct Labor-Hours 4,576 3,996 8,572 The direct labor rate is $25.20 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product V9 Product M6 $ 280.60 $ 173.80 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Expected Activity Cost Labor-related DLHS Product testing Tests Order size MHs $ 98,156 72,408 391,000 Product V9 4,576 Product M6 Total 3,996 8,572 810 1,080 1,890 4,600 4,160 8,760 $ 561,564 Required: Calculate the difference between the unit product costs under the traditional costing method and the activity-based costing system for each of the two products. (Round your intermediate calculations and final answers to 2 decimal places. Enter your answers as positive values.) Traditional unit product cost ABC unit product cost Difference Product V9 Product M6
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