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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
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 360 460 Direct Labor- Hours Per Unit 9.6 6.6 Product V9 Product M6 Total direct labor-hours Total Direct Labor-Hours 3,456 3,036 6,492 The direct labor rate is $24.40 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 276.60 $169.80 Product 79 Product M6 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Product testing Order size Estimated Activity Overhead Measures Cost DLHS $ 96,156 Tests 70, 808 MHS 387,000 $553,964 Expected Activity Product Product V9M6 Total 3,456 3,036 6, 492 690 920 1,610 4,200 3,840 8,040 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 M6 Traditional unit product cost ABC unit product cost Difference $ 0.00 $ 0.00
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