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Skagway Co. has identified activity centers to which overhead cost are assigned. The cost pool amounts for these centers and their selected activity drivers for 2010 follow.
The company products and other operating statistics follow
Products
A B C
A. Determine unit product cost using the appropriate cost drivers for each product.
B. Before it installed an ABC system, the company used a traditional costing system that allocated factory overhead to products using direct labor hours. The firm operates in a competitive market and sets products price at cost plus a 25% markup.
1. Calculate unit costs based on traditional costing. (round)
2. Determine selling price based on unit costs for traditional costing and for ABC.
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