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Traditional Product Costing Ridgeland Inc. makes backpacks for large sporting goods cha store brand names. The Accounting Department has identified the fol drivers for next
Traditional Product Costing Ridgeland Inc. makes backpacks for large sporting goods cha store brand names. The Accounting Department has identified the fol drivers for next year: 02, 3, 4 E 19.25. the following o MBC Cost Driver Number of setups. Number of orders Number of machine hours Overhead Item Expected Costs $489,600 Setup costs Ordering costs.. 130,000 920,000 88,000 Number of kilowatrs 19-28. Total predicted direct labor hours for next year is 42.500. The followin g data are for Cost of direct materials.. . . Cost of direct labor. . $18,600 Number of machine hours 450 3 200 3 Required a. Determine the unit cost for each job using a traditional plantwide overhead rate based on dire i hours. b. Determine the unit cost for each job using ABC. (Round answers to two decimal places.) As the manager of Ridgeland, is there additional information that you would want to help yuou ate the pricing and profitability of Jobs 201 and 202? Assuming the company has been using the method required in part a, how should managea to the findings in part b? c. L05, 6 E19-26. Customer Profitability Analysis Leahy Inc. has 10 customers that ace ount for all of its $4 200 000 of net income. Its activ
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