1.Truax 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:

	Expected Production	Direct Labor-Hours Per Unit	Total Direct Labor-Hours
Product V9	380	9.8	3,724
Product M6	480	6.8	3,264
Total direct labor-hours			6,988

The direct labor rate is $25.60 per DLH. The direct materials cost per unit for each product is given below:

	Direct Materials Cost per Unit
Product V9	$277.60
Product M6	$170.80

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

		Estimated		Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost		Product V9		Product M6		Total
Labor-related	DLHs	$	96,656	3,724		3,264		6,988
Product testing	Tests		71,208	720		960		1,680
Order size	MHs		388,000	4,300		3,920		8,220
		$	555,864

What is the cost of each product under traditional method of applying overhead (using a plant-wide overhead rate)? (Show work to support your answers.)

What is the cost of each product using activity-based costing overhead rates? (Show work to support your answers.)