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...

please solve question 2), thanks

Extracted text: 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 Activities and Activity Measures Supporting direct labour (direct labour-hours) Drawing software modifications (changes) Quality review and technical checks (tests) Overhead Cost $840, 000 84, 000 14, 000 Commercial Residential Total 5, 600 140 35, 000 175 29, 400 35 112 28 140 Total service department overhead cost $938, 000 Determine the unit costs (cost per square metre of architectural drawings) of the Commercial and Residential lines of business under the ABC system. (Round your answers to 2 decimal places.) Commercial Residential Unit cost


Extracted text: Problem 7A-1 Activity-Based Costing Product Costs for External Reports [LO6] Data concerning Cranur Architects Corporation's two major business lines are given below: Commercial $ 8.00 Residential $ Direct materials per square metre Direct labour per square metre Direct labour-hours per square metre 5. 60 $ 37. 50 0. 075 DLHS 392, 000 m2 50 0.1 DLHS 56, 000 m2 Estimated annual output The company has a traditional costing system in which architecture department overhead is applied to units (square metres of architectural drawings) based on direct labour-hours. Data concerning architecture department overhead and direct labour-hours for the upcoming year appear below: $938, 000 Estimated total architecture department overhead Estimated total direct labour-hours 35, 000 DLHS