Traditional Product Costing Versus Activity-Based Costing High Country Outfitters, 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 Ordering costs Maintenance $828,000 Number of setups 7,200 252,000 Number of orders 60,000 1,360,000 Number of machine hours 80,000 Power 210,000 Number of kilowatt hours 600,000 Total predicted direct labor hours for next year is 60,000. The following data are for two recently completed jobs: Job 201 Job 202 $13,500 $15,000 Cost of direct materials Cost of direct labor $19,125 $71,250 Number of units completed 1.125 915 Number of direct labor hours 270 330 Number of setups 1B 22 Number of orders 24 45 Number of machine hours 540 450 Number of kilowatt hours 270 360 a. Determine the unit cost for each job using a traditional company-wide overhead rate based on direct labor hours. Round rate to two decimal places. Overhead rate per direct labor hour $ 44.17 Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed. Job 201 Job 202 Direct materials 5 13,500 $ 15,000 Direct labor 19,125 71,250 Overhead 11,926 14,576 Totaljob cost 44,551 100,826 Units 1,125 Per unit cost 39.6 $ 915 110.19 b. Determine the unit cost for each job using ABC. Activity-based overhead rates: Round answers to two decimal places, when needed. Setup costs Ordering costs Maintenance costs $ Power 115 $ 42 -> 17 $ 0.35 NOTE: Round all answers (except cost per unit) to the nearest whole number, when applicable. Round cost per unit answers to two decimal places. Job 201 Job 202 Direct materials $ 13,500 $ Direct labor Overhead 19.125 15,000 71,250 Setup cost 2,340 x 2,860 x Ordering costs 96 x Maintenance costs 9,180 189 6.750 x Power Total job costs $ 95 43,215 x $ 126 96,112 x Units produced 1,125 915 Cost per unit 5 38.41 x 5 105.04 x