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Check my work 1 Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below: luxe andard Direct materials per
Check my work 1 Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below: luxe andard Direct materials per unit Direct 1abor per unit Direct $68.00 26.00 56.00 $21.20 labor-hours per unit Estimated annual production 40 0.70 DLHS 1.40 DLHS units units 10,000 50,000 points 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 eBook Print References Estimated total manufacturing overhead Estimated total direct labor-hours $586,000 77,000 DLHS Required: 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 Supporting direct labor (direct labor- hours ) Batch setups (setups) Safety testing (tests) Total manuf acturing overhead cost Deluxe Standard 70,000 100 Cost Total 77,000 300 385,000 132,000 69,000 7,000 200 30 100 70 586,000
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