Question
Rondeau, Incorporated, manufactures and sells two products: Product V9 and Product M6. Data concerning the expected production of each product and the expected total direct
Rondeau, Incorporated, 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 "]:} {:[" Direct Labor-Hours "],[" Per Unit "]:} {:[" Total Direct "],[" Labor-Hours "]:} Product vg 628 12.2 7,564 Product MG 720 9.2 6,624 Total direct labor-hours 14,188 The direct labor rate is $27.00 per DLH. The direct materlals cost per unit for each product is given below: {:[," Direct Materials cost per "],[," Unit "],[" Product V9 ",$289.60],[" Product M6 ",$182.86]:} The company is considering adopting an activity-based costing system with the following activity cost pools, activity
Rondeau, Incorporated, 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: The direct labor rate is $27.00 per DLH. The direct materlals cost per unit for each product is given below: The company is considering adopting an actlvity-based costing system with the following activity cost pools, actlivity measures, and expected actlvity: Requlred: Calculate the difference between the unlt product costs under the traditional costling method and the actlvity-based costing system for each of the two products. (Round your Intermedlate calculations and final answers to 2 decimal places. Enter your answers as positlve values.)Step by Step Solution
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