ACTIVITY BASED COSTING Windsor Co. makes Product X and Product Y. Direct materials for X are $500 and for Y are S400. Direct labor is costed out at $13 per hour for both products. Windsor Co. incurs $1,050,000 of overhead costs each year in its three main departments machining ($600,000), inspections ($300,000) and packing ($150,000). The machining department works 4,000 hours per year, there are 600 inspections per year, and the packing epartment packs 1,000 orders per year. Information about Windsor's two products is as follows: Product Y 3,000 500 650 Product 1,000 100 Machining hours Inspections Orders packed Direct labor hours 350 1,700 1,800 Windsor has been using traditional costing for overhead allocation. You are the new CFO a want to consider using ABC. Prepare comparative Income Statements for Product X and Product Y comparing the total product cost using both methods. For Revenue, use a markup of 30% on unit product cost. Product Y Product Y - Traditional ProductX Product X- Traditional Revenue Direct Materials Direct Labor Mfg. Overhead Total Costs Net Profit