getproctorio.com Navi erm Exam Fall 2020 i Saved Kollmorgen Inc., a manufacturing firm in Radford, VA, produces two motors, a Basic version and an Enhanced version. Data for the two models appears below: Help Save & Exit Submin Production Volume Basic Enhanced (units) 2500 5,000 Direct Material Direct Labor $40 $60 2 hours @ $12 3 hours @ 12 $24 Manufacturing $36 Overhead 2 hours @ $93 $186 3 hours @93 $279 Manufacturing overhead is currently computed by spreading overhead of $1,860,000 over 20,000 direct labor hours. Management is considering a shift to activity-based costing in an attempt to improve the firm's accounting procedures, and the following data are available: Cost Driver Volume Cost Pool Cost Cost Driver Basic Enhanced Total Setups $240,000 Number of setups 100 20 120 General Factory 1,500,000 Direct Labor Hours 5,000 15,000 20,000 Machine Processing 120,000 Machine Hours 2,200 800 3,000 $1,860,000 Kollmorgen determines selling prices by adding 40% to a product's total cost. Required (to be included on the downloadable spreadsheet below): A) Compute the total per-unit cost of the Enhanced Motor under a traditional (conventional) costing environment. B) Compute the per-unit overhead cost of the Enhanced Motor if the company switches to activity-based costing (e.g., ABC). ") Compute the Enhanced Motor's total per-unit selling price under activity-based costing. D) Kollmorgen has recently encountered significant international competition for the Enhance Motor, with considerable business being lost to very aggressive suppliers. Will activity-based costing allow the company to be more competitive with the Enhanced Motor from a price perspective? Briefly explain. Activate Windows This question will be sent to your instructor for grading. W X O