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All on problem, just two parts. Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below: Direct materials per
All on problem, just two parts.
Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below: Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production Deluxe $ 50.00 $ 8.00 0.70 DLHS 10,000 units Standard $ 38.80 $ 6.80 1.40 DLHS 50,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor-hours $514,000 77,000 DLHS Required: 1. Determine the unit product costs of the Deluxe and Standard products under the company's traditional costing system 2. The company is considering replacing its traditional costing system with an activity based absorption costing system that would have the following three activity cost pools: Expected Activity Estimated Overhead Activity Cost Pools (and Activity Measures) Cost Deluxe Standard Total Supporting direct labor (direct labor-hours) $385,000 7,000 70,000 77,000 Batch setups (setups) 78,000 200 100 300 51,000 30 70 100 Safety testing (tests) Expected Activity Estimated Overhead Cost $385,000 78,000 51,000 $514,000 Activity Cost Pools (and Activity Measures) Supporting direct labor (direct labor-hours) Batch setups (setups) Safety testing (tests) Total manufacturing overhead cost Deluxe 7,000 Standard 70,000 180 70 Total 77,000 300 100 289 30 Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the unit product costs of the Deluxe and Standard products under the company's traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Deluxe Standard Unit product cost Required 2 > Required 1 Required 2 Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Deluxe Standard Unit product cost Step by Step Solution
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