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2. The company is considering replacing its traditional costing system for determining unit product costs...

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Accounting

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2. The company is considering replacing its traditional costing system for determining unit product costs for external reports with an ABC system. The ABC system would have the following three activity cost pools: Expected Activity Estimated Overhead Cost $1, 920, 000 192, 000 32,000 Activities and Activity Measures Supporting direct labour (direct labour-hours) Drawing software modifications (changes) Quality review and technical checks (tests) Residential 33, 600 Commercial 6, 400 160 128 40 Total 40,000 200 160 32 Total service department overhead cost $2, 144, 000 Determine the unit costs (cost per square metre of architectural drawings) of the Commercial and Residential lines of business under E the ABC system. (Round your answers to 2 decimal places.) Commercial Residential Unit cost

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