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Werger Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct
Werger Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHS). The company has two products, W82R and L48S, about which it has provided the following data: 485 Direct materials per unit Direct labor per unit Direct labor-hours per unit Annual production (units) $20.60 $ 16.80 8.70 32,180 $ 60.40 $ 58.20 2.40 17.ee The company's estimated total manufacturing overhead for the year is $2,940,670 and the company's estimated total direct labor- hours for the year is 63.270. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity Measures Supporting direct labor (DLHS) Setting up machines (setups) Parts administration (part types) Total Estimated Overhead Cast $ 569,430 775,800 1,595,440 $ 2,940,670 Activities Supporting direct labor Setting up machines Parts administration WBOR 22.470 870 2,340 LARS 40,00 40.800 3.440 1.5e Total 63,270 4. 31e 3,92e Required: a. Determine the unit product cost of each of the company's two products under the traditional costing system b. Determine the unit product cost of each of the company's two products under activity-based costing system. (For all requirements, round your intermediate calculations and final answers to 2 decimal places.) WER L485 a. Unit product cost b. Unit product cost
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