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Bonita Visuals produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products. Activity Pool Binding Printing Product design General Total overhead costs Department Costs $297,000 955,500 234.000 727.500 $2,214,000 Cost Driver Number of units Machine hours Change orders None Other information is as follows: Units Direct materials cost per unit Direct labor cost per unit Direct labor hours Machine hours Change orders Tablets 62,500 $4.00 $4.00 30,000 150,000 1,500 Books 20,000 $10 $8.00 19,200 144,000 2.400 Bonita's managers have gathered the following information about selling and administrative costs. Activity Pool Shipping Advertising Commissions Total selling and administrative costs Total Cost $480,000 187.500 168,125 $835,625 Cost Driver Pounds shipped Number of mailings Sales price Weight Advertising mailings Sales commission Selling price per unit Tablets 20,000 pounds 25,000 5% of sales price $35 Books 40,000 pounds 100,000 8.00% of sales price $98 (a) Your answer is correct. Using the information given here, calculate the product margin per unit for Tablets and Books using the traditional costing system. (Round all rates and final answers to 2 decimal places, es. 15.25) Tablets Books Product margin per unit $ 5.40 $ 36.80 Prepare a report like the one in Exhibit 7-12, Panel A. (Round % of total margin to 1 decimal place, e.g. 15.2%) Tablets Books 35 $ 98 Sales price 29.60 61.20 Product costs $ 5.40 $ 36.80 Product margin 62,500 Unit sales 20,000 $ 337,500 $ Total margin 736,000 31.4 % % of total margin 68.5 96 Calculate ABC rates. (Round answers to 2 decimal places, e.g. 15.25.) S&A Cost ABC rates $ 8 /lb. Shipping $ Advertising 1.50 /mailing e Textbook and Media Attempts: 1 of 3 used (c)(ii) Using the information given here, calculate the product margin per unit for Tablets and Books using the activity-based costing system. Be sure to include selling and administrative costs. (Round all rates and final answers to 2 decimal places, eg. 15.25. Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses c.8. (45).) Tablets Books Product margin per unit

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