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Uson, Inc., manufactures and sells two products: Product Z2 and Product H9. Data concerning the expected production of each product and the expected total direct
Uson, Inc., manufactures and sells two products: Product Z2 and Product H9. Data concerning the expected production of each product and the expected total direct labour-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Total Direct Labor- Per Unit Hours Product Z2 300 6.0 1,800 Product H9 200 8.0 1,600 Total direct labor- 3,400 hours The direct labour rate is $18.80 per DLH. The direct materials cost per unit for each product is given below: Product Z2 Direct Materials Cost per Unit $267.00 Product H9 $287.30 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Overhead Product Product Measures Cost Z2 H9 Total Labor-related DLHS $71,570 1,800 1,600 3,400 Production orders Orders 38,580 300 200 500 General factory MHs 97,812 3,700 3,900 7,600 $207,962 Required: In all computations involving dollars in the following requirements, round off your answer to the nearest whole cent. a. Determine the unit product cost of each product under the company's traditional costing method. b. Determine the unit product cost of each product under the activity-based costing method
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