income (profit) of $260,000 (10 marks) Page Break Heade Job Costing vs. ABC Costing Answer questions 2 and 3 based on the scenario of Shoe Express Inc.: Shoe'Express, Inc., manufactures two types of shoes, B-Ball and Marathon. The B-Ball shoe has a complex design that uses gel-filled compartments to provide support. The Marathon shoe is simpler to manufacture and uses conventional foam padding. Following is the data provided about these two products: Marathon B-Ball shoe shoe Direct Materials per unit $14 $34 Direct Labour per unit $5.00 $17.00 Direct labour hours per 0.80 2.0 unit Annual production 20,000 10,000 The company has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labour cost. The firm's estimated total manufacturing overhead for the year is $453,960. I 2 Determine the unit product cost of each of the company's two products under the traditional costing system (25 marks) Page Break He The company is considering using activity-based costing to determine its unit product costs. Data for this proposed activity-based costing system appear below: Activities Total Activity level Maratho n shoe Activity level B- Ball shoe 20 40 60 Quality Control Advertising 48 12 60 Activities & Drivers Quality Control Advertising Total Estimated MOH cost $252,000 $201.960 $453,960 Prime video