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 Setup costs Ordering costs Maximum Quantit $734,400 195,000 1,380,000 Number of setups Number of orders Number of machine hours 7,200 65,000 80,000 40,000 Maintenance Power 132,000 Number of kilowatt hours Total predicted direct labor hours for next year is 39,000. The following data are for two recently completed jobs: Job 201 Job 202 $11,500 $13,000 $19,600 $63,300 Number of units completed1,000 850 220 270 19 21 42 460 360 200 300 Cost of direct materials Cost of direct labor Number of direct labor hours Number of setups Number of orders Number of machine hours Number of kilowatt hours 15 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 Direct labor Overhead Total cost Units produced Cost per unit $ 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 Direct labor Setup cost Ordering costs Maintenance costs Power Total job costs Units produced Cost per unit