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Rosman, Inc., manufactures and sells two products: Product Q1 and Product G2. The company currently uses a plantwide predetermined overhead rate based on direct labor-hours.
Rosman, Inc., manufactures and sells two products: Product Q1 and Product G2. The company currently uses a plantwide predetermined overhead rate based on direct labor-hours. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Direct Labor- Total Direct Production Hours Per Labor-Hours Unit Product Q1 Product G2 Total direct labor-hours 560 660 11.6 8.6 3,480 2,920 6,400 The direct labor rate is $26.40 per DLH. The direct materials cost per unit for each product is given below Direct Materials Cost per Unit $286.60 $179.80 Product Q1 Product G2 The company is considering adopting an activity-based costing system with the following activity cost pools activity measures, and expected activity: Estimated Expected Activity Activity Measures Overhead Cost Product Q1 Product G2 Activity Cost Labor-related DLHs Product testing Tests Pools $101,156 74,808 397,000 3,480 990 5.200 2,920 1,320 4,640 6,400 2,310 9.840 General factory MHs $572,964 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 Q1 Product G2 Traditional unit product cost ABC unit product cost Difference 0.00 | $. 0.00
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