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TB Problem Qu. 4-225 Rondeau, Inc., manufactures and sells ... Rondeau, Inc., manufactures and sells two products: Product V9 and Product M6. Data concerning the
TB Problem Qu. 4-225 Rondeau, Inc., manufactures and sells ... 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 500 600 Direct Labor- Hours Per Unit 11.0 Product V9 Product M6 Total direct labor-hours Total Direct Labor-Hours 5,500 4,800 10,300 The direct labor rate is $25.80 per DLH. The direct materials cost per unit for each product is given below Direct Materials Cost per Unit $283.60 $176.80 Product V9 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 Activity Measures DL HS Tests MHS Estimated Overhead Cost $ 99,656 73,608 394,000 $567,264 Expected Activity Product Product V9 M6 Total 5,500 4,800 10,300 900 1,200 2,100 4,900 4,400 9,300 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
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