Chapter 4, Problem 4.48BP

1.

To determine

To calculate: Product cost per unit for each job using original costing system.

2.

To determine

To calculate: Product cost using ABC cost rates.

3.

To determine

To identify: The costing system that assigns the cost of resources consumed by each job more accurately.

4.

To determine

To identify: the course of action that the managers will take for make or buy the jobs if they are using (a) original costing system and (b) ABC system costs.