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25 01:56:43 Rondeau, Incorporated, manufactures and sells two products: Product V9 and Product M6. Data concerning the expected production of each product and the expected
25 01:56:43 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 Product V9 Product M6 Direct Materials Cost per Unit $ 291.60 $184.80 Activity Cost Pools Labor-related The direct labor rate is $27.40 per DLH. The direct materials cost per unit for each product is given below: Product testing Order size Expected Production 660 760 Direct Labor-Hours Per Unit The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Measures DLHS Tests MHS 12.6 9.6 Total Direct Estimated Overhead Labor-Hours 8,316 7,296 15,612 Cost $ 103,656 76,808 402,000 $ 582,464 Product V9 8,316 1,140 5,700 Expected Activity Product M6 7,296 1,520 5,040 Total 15,612 2,660 10,740 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.)
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