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Under a traditional job costing system, Jason understood that his primary product included direct costs of $7.90 per unit and indirect costs of $3.80 per
Under a traditional job costing system, Jason understood that his primary product included direct costs of $7.90 per unit and indirect costs of $3.80 per unit. The activities used to generate that product involved machine setup, material moves, and assembly. Using ABC, Jason's MOH costs allocated to his primary product are $2.70 per unit. Calculate and compare the total product cost per unit under the traditional method and the ABC method. If Jason currently sells this product for $15.70 per unit, what gross margin percentage is he generating under each method? (Round answers to 2 decimal places, e.g. 15.25%.) Gross margin percentage Traditional % ABC %
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