Reference no: EM131781125

Assignment

Stockin Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products.

Activity Pool	Department Costs	Cost driver
Binding	$237,795.00	Number of units
Printing	772,264.50	Machine hours
Product design	197,760.00	Change orders
General	937,180.50	None
Total overhead costs	$2,145,000.00

Other information is as follows:

	Tablets	Books
Units	76,400	19,100
Direct materials cost per unit	$4.00	$12.00
Direct labor cost per unit	$5.00	$10.00
Direct labor hours	32,500	16,250
Machine hours	150,100	112,575
Change orders	2,060	4,120

Determine the unit product cost for tablets using the traditional costing system and the activity-based costing system.