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3. Determine the unit product cost of each of the company's two products under activity-based costing system (35 marks) Page Break Page Break Job Costing
3. Determine the unit product cost of each of the company's two products under activity-based costing system (35 marks) Page Break Page Break Job Costing vs. ABC Costing Answer questions 2 and 3 based on the scenario of Shoe Express Inc.: Shoe Express, Inc., manufactures two types of shoes, B-Ball and Marathon. The B-Ball shoe has a complex design that uses gel-filled compartments to provide support. The Marathon shoe is simpler to manufacture and uses conventional foam padding. Following is the data provided about these two products: Marathon B-Ball shoe shoe $34 Direct Materials per unit $14 Direct Labour per unit $5.00 Direct labour hours per 0.80 unit $17.00 2.0 Annual production 20,000 10,000 I The company has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labour cost. The firm's estimated total manufacturing overhead for the year is $453,960
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