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Problem 7.40 Vines Corporation produces custom machine parts on a job order basis. The company has two direct product cost categories: direct materials and direct

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Problem 7.40 Vines Corporation produces custom machine parts on a job order basis. The company has two direct product cost categories: direct materials and direct labour. In the past, indirect manufacturing costs were allocated to products using a single indirect cost pool, allocated based on direct labour hours. The indirect cost rate was $100 per direct labour hour. The managers of Vines Corporation decided to switch from a manual system to software programs that release materials and that signal machines when to begin working. Simultaneously, the company adopted an activity-based costing system. The manufacturing process has been organized into six activities, each with its own supervisor who is responsible for controlling costs. The following list indicates the activities, cost drivers, and cost allocation rates: Cost Cost per Unit Activity Driver of Cost Driver Material handling Number of parts $ 0.40 Milling Machine hours 22 Grinding Number of parts 0.80 Assembly Hours spent in assembly 5 Inspection Number of units produced 20 Shipping Number of orders shipped 1,700 The company's information system automatically collects the necessary data for these six activity areas. The data for two recent jobs follow: Direct materials cost Direct labour cost Number of direct labour hours Number of parts Number of machine hours Number of job orders shipped Number of units Number of hours in assembly Job Order 410 411 $ 9,400 $ 59,000 $ 750 $ 11,700 20 300 450 2,900 150 1,200 7 1 1 40 10 230 2 50 Suppose the company had not adopted an ABC system. Compute the manufacturing cost per unit for job orders 410 and 411 under the old, traditional costing system. (Round answers to 2 decimal places, e.g. 255.66.) Job Order 410 411 Manufacturing cost per unit Under the new ABC system, compute the manufacturing cost per unit for job orders 410 and 411. (Round answers to 0 decimal places, e.g. 255.) Job Order 410 411 Manufacturing cost per unit

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