P2. Printware Products, Inc., produces printers for wholesale distributors. It has just completed packaging an order from Hawes Company for 450 printers. Before the order 1: Product unit cost: $90.00 4 Activity cost per unit: $2147 is shipped, the controller wants to compare the unit costs computed under the company's : Product unit cost: $93.49 ew activity-based costing system with the unit costs computed under its traditional costing system. Printware's traditional costing system assigned overhead costs at a rate of 240 percent of direct labor cost. Data for the Hawes order are as follows: direct materials, $17,552; purchased parts, $14,856; direct labor hours, 140; and average direct labor pay rate per hour, $17. Data for activity-based costing related to processing direct materials and purchased parts for the Hawes order follow Cost Driver Engineering hours Number of setups $36 per setup Machine hours Assembly hours$42 per assembly hour Number of packages $5.60 per package Machine hours Activity Usage 18 engineering hours 12 setup:s 82 machine hours 96 assembly hours 150 packages 82 machine hours Activity Engineering systems design Activity Cost Rate $28 per engineering hour 537 per machine hour Parts production Product assembly Packaging Building occupancy $10 per machine hour REQUIRED 1. Use the traditional costing approach to compute the total cost and the product unit 2. Using the cost hierarchy, identify each activity as unit level, batch level, product 3. Prepare a bill of activities for the activity costs. cost of the Hawes order. level, or facility level. 4. Use ABC to compute the total cost and product unit cost of the Hawes order. (Round your answer to the nearest cent.) 5. ACCOUNTING CONNECTION What is the difference between the product unit cost you computed using the traditional approach and the one you computed using ABC? Does the use of ABC guarantee cost reduction for every