Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need help with this managerial accounting problem i do not understand how to find the answers. Stillicum Corporation makes ultra light-weight backpacking tents. Data

i need help with this managerial accounting problem i do not understand how to find the answers.
image text in transcribed
image text in transcribed
image text in transcribed
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 $ 59.00 $ 17.00 0.70 DLHS 10,000 units Standard $ 47.00 $ 14.00 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: nces Estimated total manufacturing overhead Estimated total direct labor-hours $627,000 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 Activity Cost Pools and Activity Measures Supporting direct labor (direct labor hours) Batch setups (setups) Safety testing (tests) Total manufacturing overhead cost Estimated Overhead Cost $ 462,000 105,000 60,000 $ 627,000 Deluxe 7.000 200 30 Standard 70,000 100 70 Total 77,000 300 100 ning the unit product costs of the Deluxe and Standard products under the activity based absorption costing system. 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 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

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing IT Infrastructures For Compliance

Authors: Martin Weiss

1st Edition

0763791814, 978-0763791810

More Books

Students also viewed these Accounting questions

Question

1. Explain how business strategy affects HR strategy.

Answered: 1 week ago