Check my work Exercise 2A-2 Activity-Based Absorption Costing as an Alternative to Traditional Product Costing [LO2-5) Harrison Company makes two products and uses a traditional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Rascon Parcel $ 10.00 $ 5.00 $ 2.70 $ 4.00 .10 .15 17.000 42,000 hces These products are customized to some degree for specific customers Required: 1. The company's manufacturing overhead costs for the year are expected to be $232,000. Using the company's traditional costing system, compute the unit product costs for the two products, 2. Management is considering an activity-based absorption costing system in which half of the overhead would continue to be allocated based on direct labor-hours and half would be allocated based on engineering design time. This time is expected to be distributed as follows during the upcoming year: Engineering design time (in hours) Rascon Parcel Total 4,400 4,400 2,800 Compute the unit product costs for the two products using the proposed activity-based absorption costing system Complete this question by entering your answers in the tabs below. Management is considering an activity-based absorption costing system in which half of the overhead would continue ocated based on direct labor-hours and half would be allocated based on engineering design time. This time is expecte Stributed as follows during the upcoming year: Engineering design time (in hours) Rascon Parcel 4,400 4,400 Total 8,800 ompute the unit product costs for the two products using the proposed activity-based absorption costing system. Complete this question by entering your answers in the tabs below. Required 1 Required 2 The company's manufacturing overhead costs for the year are expected to be $232,000. Using the company's traditional costing system, compute the unit product costs for the two products. (Round your intermediate calculations and final answers to 2 decimal places.) Rascon Parcel Unit product cost Red Required 2 > Check my 2. Management is considering an activity-based absorption costing system in which half of the overhead would continue to allocated based on direct labor-hours and half would be allocated based on engineering design time. This time is expected distributed as follows during the upcoming year: Rascon Parcel Total Engineering design time (in hours) 4,400 4,400 8,800 Compute the unit product costs for the two products using the proposed activity-based absorption costing system. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the unit product costs for the two products using the proposed activity-based absorption costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Rascon Parcel Unit product cost
