P4-43A e ABC (Learning Objectives 2 & 3 stems specializes in servers for work group,e-commerce, and enterprice e planning ERP) applications The company's original job cost system has two dint categores direst materials and diect labor Overhead is allacated to jobs at the singe ate of $24 per direct laor our Atask force headed by Haio's CFO recently designed an ABC system with fo ectivities. The ABC system retains the current system's two direct cost categories. Th t budgets only overhead costs for each activity Pertinent data follow Cost Allocation Rate $ 0.90 Allocation Base Number of parts 51000 Assembling hours Number of S 70.00 $ 1,600.00 Systems has been awarded two new a Budget data relating to the contracts follow t contracts that will be produced as Job A Hao Job A Job B 16,000 2,100 mber of assembling hours 1,600 220 mber of shipments al dacTabor hours Aber of output units Drect materlals Drect labor costc 9,000 100 700 10 $220,000 $40,000 175,000 $18,000 1. Compute the product cost per unit for each job using the orlginal costing system d Suppose Halo Systems adopts the ABC system. Compute the product cost per unit d. Which costing system more accurately assigns to jobs the costs of the resources 4 A dependable company has offered to produce both jobs for Halo for $5,700 per out- with two direct cost categories and a single overhead allocation rate). for each job using ABC commumed to produce them? Explain. put unit. Halo may outsource (buy from the outside company) Job A only, Job B only, or both jobs. Which course of action will Halo's managers take if they base their deci- sen on (a) the original system? (b) ABC system costs? Which course of action will yield more income? Explain