Boulware Products produces printers for wholesale distributors. It has just completed packaging in order from Shawl Company for 450 printers. Before the order is shipped, the controller wants to compare the unit costs computed under the company's new acting-based costing system with the unit-costs computed under its traditional costing system. Boulware's traditional costing system assigned overhead costs at a rate of 240 percent of direct labor costs. Data for the Shawl order are as follows: direct materials, $17,552; purchased parts, $14,856; direct labor hours 140; and avg directo labor pay rate per hour $17. Data for activity-based costing related to processing direct materials and purchased parts for the Shawl order as are as follows: Activity Cost Driver Activity Cost Rate Activity Usage Engineering Sytem Engineering $28/per engineering/hr 18 engineering/hr Design Setup Number of $36 per setup 12 setups setups Parts Production Machine hrs $37 per machine hr 82 machine hos Product Assembly Assembly hrs 442 per assembly 96 assembly hours Packaging Number of $5.60 per package 150 packages packages Building Machine $10 per machine hr 82 machine hrs Occupancy hrs 1. Use the traditional costing approach to compute the total cost and the product unit cost of the Shawl order. 2. Using the cost heirarchy, 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 Shawl order. 5. What is the difference between the product unit cost you computed using the traditional approach and the one you computed using ABC? Does the use of ABC guarantee cost reduction for every order?