Explain the difference in gross profit for Home and Work when switching from Traditional costing to and ABC Costing system. Since sell price is the same in both, the real answer is how cost of each product shifts when switching from traditional to ABC system. The cost per unit numbers are laid out below to make it easier to see the pertinent information.

 Home Work

 Cost/unit Cost/unit

Traditional $191.83 $267.80 ABC $$168.99 $307.76

Please use the concept of activity proportions to answer the question: Explain how/why the cost of each product shifted when switching from a traditional system to an ABC system.