2. ACCOUNTING CONNECTION Will management's prop targeted total cost per unit? What should o reduce costs? Which steps that management is proposing do you believe will be the most difficult to accomplish? ACCOUNTING CONNECTION what are the company's support services? What role 3. should these services play in the value chain analysis Activity-Based Costing P2. Printware Products, Inc., produces printers for wholesale distributors. It has just completed packaging an order from Hawes for 450 printers. Before the order shipped, the controller wants to compare the unit costs computed under the new costing the unit costs computed its traditional sting system. Printware's traditional costing system assigned overhead costs 240 percent of direct labor cost Data for the Hawes order are as follows: direct materials, $17,552; purchased parts, $17. Data s14,856; direct labor hours, 140; and average direct labor pay rate per hour for activity-based costing related to processing direct materials and purchased parts for the Hawes order follow Activity cost Rate Activity Usage Cost Driver Activity $28 per engineering hour 18 engineering hours neering hours Engineering systems design Eng 12 setups Number of setups $36 per setup 82 machine hours $37 per machine hour Machine hours Parts production $42 per assembly hour 96 assembly hours Assembly hours Product assembly Number of packages $5.60 per package 150 packages Packaging $10 per machine hour 82 machine hours Machine hours Building occupancy REQUIRED 1. Use the traditional costing approach to compute the total cost and the product unit cost of the Hawes ord 2. Using the cost hierarchy, identify each activity as unit level, batch level, product level, or facility level 3. Prepare a bill of activities for the activity costs 4. Use ABC to compute the total cost and product unit cost of the Hawes order. (Round your answer to the nearest cent 5. ACCOUNTING CONNECTION What is the difference between the product unit you computed using the traditional approach and the one you computed using BC? Does the use of ABC guarantee cost reduction for every order? Activity Cost Rates P3. Tailgator Company produces four versions of its model J7-21 bicycle seat. The four versions have different shapes, but their processing operations and production costs are identical. During July, the following costs were incurred: (Continued)