Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments. Model A's production is much more labor-intensive than that of Model B. Model B is also the more popular of the two speakers. The following data have been gathered for the two products (assume budget = actual):

Product Data:

Model A Model B Units produced per year 20 200 Prime cost 400 3,000 Direct labor hours 160 640 Machine hours 150 850 Production runs 20 10 Inspection hours 16 24 Maintenance hours 20 80

Activity Overhead costs: Setup costs 900 Inspection costs 400 Machining 1,000 Maintenance 300 Total 2,600

Department MH, DLH, Overhead costs:

Model A Model B Overhead costs: Department 1 (MH) 100 400 2,000

Department 2 (DLH) 120 280 1000

Required Round to two decimal places. Assume no beginning and ending balances of WIP of each product. Using the costing table in the class, answer the following

1. Compute the product cost per unit (unit COGM) for each product by using a plant- wide rate based on direct labor hours. (Note: Round to two decimal places.)

2. Compute the product cost per unit (unit COGM) for each product by using departmental rates based on machine hours (MH) for the Department 1 and direct labor hours (DLH) for the department 2. 3. Compute the product cost per unit (unit COGM) for each product by using ABC. (Note: Round rates and unit overhead cost to two decimal places.)