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Selling Price per Unit Total Cost Allocated: ABC Cost per Unit Units Produced ABC Product D-13 K-17 R-23 Totals Total Costs Allocated: Traditional Costing $2,100,000 1.280,000 214.500 $3.594,500 Cost per Unit: Traditional Costing $ 8.40 9.14 10.73 $14.65 15.60 18.50 250,000 140,000 20.000 $2,000,000 1,235,000 359.500 $3.594.500 $ 8.00 8.82 17.98 Required a. Determine the gross profit margin for each product produced based on the ABC data [(Selling price - ABC cost per unit) x Unit produced]. b. Determine the gross profit margin for each product produced based on the traditional costing data (Selling price - Traditional cost per unit) x Unit produced). e. Provide a possible explanation as to why the cost of R-23 increased under the ABC system while the cost D-13 decreased d. Suggest what action management might take with respect to the discoveries resulting from the ABC versus traditional contine analysis. Assume that Hydraulic Hoses expects to produce a gross profit margin on each product of at least 40 percent of the selling price eget what action coins analysis. Assum.cent of the selling price. BUMPOO O BUMUBUNG. GIUG. the university onine.net versity Managerial Accounting: MBAS24_0803_19071 Manage Profile Messages Calendar ray a Unit Unit 2 Usta n Units Un Unt? Unte Unit 5 - 75.00 pts Question Ni Save Assignment Submitted 1. (Using ABC to improve product pricing) Answer the four questions posed in the case, ATC 5-1 on pages 249-250. Include in your answer the basic differences between volume based (traditional) overhead application procedures and the ABC method. Click here to edit your

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