Traditional Product Costing versus Activity$-$Based Costing

Ridgeland Inc. makes backpacks for large sporting goods chains that are sold under the customers' store brand names. The Accounting Department has identified the following overhead costs and cost drivers for next year:

Overhead Item Expected Costs Cost Driver Maximum Quantity

Setup costs $$489,600$ Number of setups $7,200$

Ordering costs $130,000$ Number of orders $65,000$

Maintenance $920,000$ Number of machine hours $80,000$

Power $88,000$ Number of kilowatt hours $440,000$

Total predicted direct labor hours for next year is $42,500.$ The following data are for two recently completed jobs:

Job $201$ Job $202$

Cost of direct materials $$10,500$ $$12,000$

Cost of direct labor $$18,600$ $$62,300$

Number of units completed $900750$

Number of direct labor hours $220270$

Number of setups $1519$

Number of orders $2142$

Number of machine hours $450360$

Number of kilowatt hours $200300$

a$.$ Determine the unit cost for each job using a traditional plantwide overhead rate based on direct labor hours.

Round cost per unit answers to two decimal places when applicable.

Job $201$ Job $202$

Direct materials Answer

$0$

Answer

$0$

Direct labor Answer

$0$

Answer

$0$

Overhead Answer

$0$

Answer

$0$

Total cost Answer

$0$

Answer

$0$

Units produced Answer

$0$

Answer

$0$

Cost per unit Answer

$0$

Answer

$0$

b$.$ Determine the unit cost for each job using ABC. Round cost per unit answers to two decimal places when applicable.

Job $201$ Job $202$

Direct materials Answer

$0$

Answer

$0$

Direct labor Answer

$0$

Answer

$0$

Setup cost Answer

$0$

Answer

$0$

Ordering costs Answer

$0$

Answer

$0$

Maintenance costs Answer

$0$

Answer

$0$

Power Answer

$0$

Answer

$0$

Total job costs Answer

$0$

Answer

$0$

Units produced Answer

$0$

Answer

$0$

Cost per unit Answer

$0$

Answer

$0$