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2.40 Werger Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on

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2.40 Werger Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHS). The company has two products, WBZR and L485, about which it has provided the following data: 12R L485 Direct materials per unit $ 19.60 $ 56.20 Direct labor per unit $17.20 $ 60.40 Direct labor-hours per unit 0.70 Annual production (units) 38,900 19.000 The company's estimated total manufacturing overhead for the year is $2,846,674 and the company's estimated total direct labor- hours for the year is 72,830 The company is considering using a variation of activity-based costing to determine its unit product costs for external reports Data for this proposed activity based costing system appear below Activities and Activity measures Estimated Overhead Cost Supporting direct labor (OLMA) $ 655,470 Setting up machines (setups) 660,044 Parts administration (part types) 1,531,160 Total $ 2,046,674 Activities 1485 Total Supporting direct labor 45,600 72.830 Setting up machines 3,40 4,286 Parts administration 1.000 1,990 3,790 Required: a Determine the unit product cost of each of the company's two products under the traditional costing system b. Determine the unit product cost of each of the company's two products under activity-based costing system (For all requirements, round your intermediate calculations and final answers to 2 decimal places:) WER LABS Un product cost b. Unit product cont WER 27,230

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