Use this excel sheet to answer the questions.

ABC; pricing Chester Inc. has identified activity centers to which overhead costs are assigned. The cost pool amounts for these centers and their selected activity drivers for the year follow. Activity Centers Costs Activity Drivers Utilities $1,800,000 90,000 machine hours Scheduling and setup. 1,638,000 1,170 setups Material handling 3,840,000 2,400,000 pounds of material The company's products and other operating statistics follow. Products A B Direct costs.. Machine hours Number of setups. Pounds of material . Number of units produced Direct labor hours. $120,000 45,000 195 750,000 60,000 48,000 $120,000 15,000 570 450,000 30,000 27,000 $ 135,000 30,000 405 1,200,000 90,000 75,000 a. b. Determine unit product cost using the appropriate cost drivers for each product. Before it installed an ABC system, Chester used a traditional costing system that allocated fac- tory overhead to products using direct labor hours. The firm operates in a competitive market and sets product prices at cost plus a 25 percent markup. 1. Calculate unit costs based on traditional costing. (Round to two decimal places.) 2. Determine selling prices based on unit costs for traditional costing and for ABC. (Round to two decimal places.) Insert your answers in the gray-shaded cells. If an answer is incorrect, the word "wrong" will appear. Utility costs Machine hours Utility cost per MH Scheduling & setup costs Number of setups Scheduling cost per setup Material handling costs Number of pounds Handling cost per lb. Products B Direct costs Utilities Scheduling & setup Material handling Total Units produced Cost per unit Product Overhead DLH Overhead rate = Overhead / DLH #VALUE! Product A Product B Product C 1) Direct costs Overhead Total Units produced Cost per unit Product A Product B Product C 2) Conventional Cost per unit Cost plus markup as % Selling price Product A Product B Product C ABC Cost per unit Cost plus markup as % Selling price