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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 wstem

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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 wstem in which a single plontwide predetermined overhead rate is computed based on direct tobor hours, Data for the two products for the upcoming year follow Bascon Parcel Direct materials cost per unit $ 12.00 55.00 Direct labor cost per unit $ 2.80 3.50 Direct labores per unit .50 Number of units produced 20,000 45,000 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 $1,007750. 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 Kancon Barcel Total Engineering design imenours) 4,000 4,000 8,000 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 The company's manufacturing overhead costs for the year are expected to be $1,007,750. 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 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

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