Sony A. & Sons is a company located in the Virgin Islands that manufactures two types of DVD players, an Entertainment model and a Home model. The Entertainment model is a multi-format DVD player with Wi-Fi capability, and DST decoder. The home model's primary feature is progressive-scan. Annual production is 50,000 units for the Entertainment and 20,000 units for the Home.

The Home model requires 2 Hours of direct labor while the Entertainment Model requires 3 hours of direct labor for completion. Therefore, total annual direct labor hours are 190,000 hours. The predetermined overhead rate is $5.53 per direct labor hour. The direct materials cost per unit is $42 for the Entertainment model and $11 for the Home model. The direct labor cost is $9 per hour for both models.

The company's managers identified six activity cost pools and related cost drivers and accumulated overhead by cost pool as follows.

Instructions: (all numbers should be rounded to two decimals)

1. Under traditional product costing, compute the total unit cost of both products. Prepare a simple comparative schedule of the individual costs by product.
2. Compute the total cost per unit for each product under ABC.
3. Comment on (1) the comparative overhead cost per unit for the two products under ABC, and (2) the comparative total costs per unit under traditional costing and ABC.