The cost accountant of Above the Ankle is considering to use the ABC system in determining the cost of its products. At present, the company uses the traditional costing system wherein factory overhead costs are allocated based on direct labor hours. The cost accountant believes that the present system maybe providing misleading cost information,hence, the plan to change to the ABC system. For the coming period, the company is planning to use 5,000 direct labor hours, and its total budgeted factory overhead amounts to P90,000, broken down as follows:

Activity	Cost Driver	Budgeted Activity	Budgeted Cost
Setup costs	Number of set ups	50	P40,000
Production monitoring	Number of batches	40	P100,000
Quality control	Number of inspections	1,000	P30,000

Projected data for one of the Companys product, Product B, for the coming period are as follows:

Production and sales 1,500 units Direct labor hours 2,520 hours Units per batch 500 Number of setups 5 Number of inspections 180 Direct material cost P50 per unit Direct labor rate P25 per hour

1. The Applied overhead under traditional costing

2. Applied overhead under ABC system

3. If the Company will use the traditional full cost system, the cost per unit of product B for the coming period will be ____________.

4. If the Company will use the ABC system, the cost per unit of product B for the coming year will be _________.

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