P5-3B

d t et management's needs. Traditional Product Costing Versus Activity-Based Costing High Country Outfitters, Inc., makes hackpacks for large sporting goods chains that are sold under the customers' store brand names. The ounting department has identified the following overhead costs and cost drivers for next year: L02,3 Expected Costs Overhead Item Maximum Quantity 7,200 60,000 80,000 Cost Driver Setup costs. .. $936,000 Number of setups. Ordering costs . 240,000 1,200,000 Number of machine hours Total predicted direct labor hours for next year is 60,000. The following data are for two recently completed jobs: Job 201 Job 202 Cost of direct materials . $13,500 $19,125 1.125 270 $15,000 $71,250 915 330 . . Number of units completed. Number of direct labor hours. . . . . . . Number of setups... Number of orders Number of machine hours . . . . . . . . . . 24 540 270 45 450 360 . .. . Required a Determine the unit cost for each job using a traditional company-wide overhead rate based on b. direct labor hours. De termine the unit cost for each job using ABC. (Round answers to two decimal places.) C As the manager of High Country, is there additional information that you would want to help you evaluate the pricing and profitability of Jobs 201 and 202? Assuming the company has been using the method required in part a, how should managemernt react to the findings in part b? d