Suppose Landon used a traditional costing system with machine hours as the cost

Question

Suppose Landon used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Omit the "$" sign in your response.)

Calculate the production cost per unit for each of Landon's products under a traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.)

Calculate Landon's gross margin per unit for each product under the traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.)

Select the appropriate cost driver for each cost pool and calculate the activity rates if Landon wanted to implement an ABC system. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Assuming an ABC system, assign overhead costs to each product based on activity demands . (Omit the "$" sign in your response.)

Calculate the production cost per unit for each of Landon's products in an ABC system. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.)

Calculate Landon's gross margin per unit for each product under an ABC system. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.)

Company makes two models of children's playhouses, the Castle and the Mansion. Basic production information follows:

Explanation / Answer

Total production cost for castle = 760(35+21) + 82464.03 = 125024.03 for mansion = 420(63+36) + 112450.97 = 154030.97 production cost per unit for castle = 125024.03/760 = 164.50$/unit for mansion = 154030.97/420 = 366.74$/unit

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