Using the Traditional Costing method and direct labor hours as the overhead driver, what would be the unit cost for Product A in January 20xx?Make sure you also include direct material and direct labor costs.

BUDGETED (PROJECTED) FOR YEAR 20xxProduct AProduct BTotalsUnits To Be Produced for the Year 90,000 95,000 185,000D.L. Hours Projected for the Year126000135000 261,000Machine Hours for the Year 30,000 29,000 59,000Inspection Hours for the Year - 11,000 11,000Engineering Hours for the Year 500 500 1,000Facility Use (Square Feet) for the Year 10,000.00 7,000.00 17,000Projected Budgeted Overhead for the YearAmountUse These Cost Pool Drivers for ABC MethodMachine Costs$ 1,200,000Machine HoursInspection Cost$ 500,000Inspection HoursEngineers$ 400,000Engineering HoursFacility & General$ 750,000Square FootageTOTAL BUDGETED O.H.$ 2,850,000 ACTUAL RESULTS FOR THE MONTH OF JANUARY 20xxProduct AProduct BTotalsUnits Actually Produced 7,560 8,000.00 15,560Actual D.L. Hours to Produce 11,000 11,250 22,250Actual D.L. Cost$ 165,000.00$ 170,000.00 335,000Actual D.M Cost$ 210,345.00$ 490,670.00 701,015Machine Hours for the Year 2,500 2,400 4,900Inspection Hours for the Year 100 800 900Engineering Hours for the Year 42.00 40.00 82Facility Use (Square Feet) for the Year 10,000.00 5,000.00 15,000

2. Using the Traditional Costing method and direct labor hours as the overhead driver, what would be the unit cost for Product B in January 20xx?Make sure you also include direct material and direct labor costs.

3. Using the ABC method to allocate overhead, what would be the cost per unit for Product A for January 20xx? Make sure you include all direct material, direct labor, and applied overhead costs.

4.Using the ABC method to allocate overhead, what would be the cost per unit for Product B for January 20xx? Make sure you include all direct material, direct labor, and applied overhead costs

As activity increases, Fixed Cost Per Unit:

	A.	Increases per unit
	B.	Remains unchanged per unit
	C.	Decreases per unit
	D.	Reduces variable costs per unit