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Data concerning Cranur Architects Corporation's two major business lines are given below: Direct materials per square metre Direct labour per square metre Direct labour-hours per
Data concerning Cranur Architects Corporation's two major business lines are given below: Direct materials per square metre Direct labour per square metre Direct labour-hours per square metre Estimated annual output Commercial $ 5.00 $ 51 0.1 DLHS 64, 000 m2 Residential $ 3.50 $ 38.25 0.075 DLHS 448, 000 m2 The company has a traditional costing system in which architecture department overhead is applied to units (square metres of architectural drawings) based on direct labour-hours. Data concerning architecture department overhead and direct labour-hours for the upcoming year appear below: Estimated total architecture department overhead Estimated total direct labour-hours $2, 144, 000 40,000 DLHS 2. The company is considering replacing its traditional costing system for determining unit product costs for external reports with an ABC system. The ABC system would have the following three activity cost pools: Expected Activity Activities and Activity Measures Supporting direct labour (direct labour-hours) Drawing software modifications (changes) Quality review and technical checks (tests) Estimated Overhead Cost $1,920,000 192, 000 32,000 Commercial 6,400 160 128 Residential 33, 600 40 Total 40,000 200 160 32 Total service department overhead cost $2, 144, 000 Determine the unit costs (cost per square metre of architectural drawings) of the Commercial and Residential lines of business under the ABC system. (Round your answers to 2 decimal places.) Commercial Residential Unit cost
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