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	$175,000	Number of setups	1,750
Ordering costs	120,000	Number of orders	15,000
Assembly	910,000	Number of machine hours	14,000
Finishing	208,000	Number of direct labor hours	104,000

The following data are for two recently completed jobs:

		Job 201	Job 202
Cost of direct materials		$12,000	$14,000
Cost of direct labor		$20,500	$40,000
Number of units completed		1,000	850
Number of setups		15	18
Number of orders		200	100
Number of machine hours		200	225
Number of direct labor hours		820	1,600

a. Determine the unit cost for each job using a traditional plantwide overhead rate based on machine 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
Assembly
Finishing
Total job costs
Units produced
Cost per unit