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Rondeau, Inc., manufactures and sells two products Product V9 and Product M6. Data concerning the expected production of each product and the expected total direct labor-hours (DLH) required to produce thot output appear below. Expected Direct Labor Total Direct Production Hours Per Unit Labor-Hours Product V9 600 12. 7,200 Product M6 9.0 6.200 Total direct labor-hours 13,500 700 The direct laborite is $25 80 por DLH. The direct materials cost per unit for each product is given below Product ve Product mo Direct Materials Cost ber undt 5200.60 $111.00 The company is considering adopting on activity bosed costing Wotem with the following activity cost pools: activity measures, and expected activity Estated Expected Activity ALIVE Overhead Activity Cost Pools Measures Product V9 Product Tot borrelated DL 3102150 7,200 200 13,500 product testing Tests 25,000 1.050 1,40 2,450 5. 10,200 3575,754 Rondeau, Inc., manufactures and sells two products: Product V9 and Product M6. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below. Expected Production 600 780 Direct Labor Hours Per Unit Product V9 Product MG Total direct labor-hours 12.0 Total Direct Labor-Hours 7,289 6,309 13,500 9.0 The direct labor rte is $26.80 per DLH. The direct materials cost per unit for each product is given below. Direct Materials Cost per Unit $288.60 $181.80 Product V9 Product M6 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Expected Activity Activity Cost Pools Labor related Product testing Order Activity Measures DLHS Tests HS Estimated Overhead Cost $102,156 75,608 399.000 $576,764 Product V9 Product M6 2,200 6,300 1,050 1,400 5,400 4.800 Total 13,500 2,450 10,200 Expected Production 600 700 Direct Labor- Hours Per Unit 12.0 9.0 Product V9 Product M6 Total direct labor-hours Total Direct Labor-Hours 7,200 6,300 13,500 The direct labor rte is $26.80 per DLH. The direct materials cost per unit for each product is given below Direct Materials Cost per Unit $288.60 $181.80 Product V9 Product M6 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Expected Activity Activity Cost Pools Labor-related Product testing Order size Activity Measures DLHS Tests Estimated Overhead Cost $102,156 75,608 399,000 $576,764 Product V9 Product M6 7,200 6,300 1,050 1,400 5,400 4,800 Total 13,500 2,450 18,209 MHS Required: Calculate the difference between the unit product costs under the traditional costing method and the activity-based costing system for each of the two products. (Round your intermediate calculations and final answers to 2 decimal places. Enter your answers as positive values.) Product V9 Product M Traditional unit product cost ABC unit product cost Difference
