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Use the following to answer questions 13 and 14: Simba Corporation manufactures three products. In the past, Simba has been using a traditional costing system

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Use the following to answer questions 13 and 14: Simba Corporation manufactures three products. In the past, Simba has been using a traditional costing system in which manufacturing overhead was applied using a predetermined overhead rate of 150% of direct labor cost. Sensing the traditional costing system was distorting product costs; Simba is considering a switch to an activity-based costing system. Under activity-based costing, manufacturing overhead costs will be assigned to products using three activity cost pools. Information on these cost pools for next year is as follows: Activity Cost Pool Expected Activity Estimated Overhead Cost Machine Setups 400 Setups $150,000 Quality Control 1.500 Inspections $180,000 Production 30,000 Machine hours $480.000 Information on a per unit basis for the three products produced by Simba follows: Model #19 Model #36 Model #58 Direct material cost. $400 $540 $310 Direct labor cost......... $810 $600 $220 Number of setups............. 2. 3 1 Number of inspections........ 1 3 1 Number of machine hours...... 8 10 1 pts Question 13 Under the traditional costing system currently used by Simba, the total per unit product cost for Model# 36 is: $900 O $2,040 O $1.140 O $1,440 Question 14 1 pts Under the activity-based costing system proposed by Simba, the total per unit product cost for Model# 19 is: O $1.210 $1,334 $934 $2.144

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