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REVIEW PROBLEM: ACTIVITY-BASED COSTING Deluxe deck chair: 2000 units x 5 DLHs per unit.... 10,000 Tourist deck chair: 10,000 units x 4 DLHs per units...

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REVIEW PROBLEM: ACTIVITY-BASED COSTING Deluxe deck chair: 2000 units x 5 DLHs per unit.... 10,000 Tourist deck chair: 10,000 units x 4 DLHs per units... 40,000 Total Direct Labor Hours 50,000 Deluxe Tourist Direct Materials S 25 17 Direct Labor ($12 per DLH) 60 48 Estimated Expected Activity Activities and Activity Measures Overhead Deluxe Tourist TOTAL Labor related (direct labor hours) 80,000 10,000 40,000 50,000 Machine setups (number of setups) 150,000 3,000 2,000 5,000 Parts administration (number of parts) 160,000 50 30 80 Production orders (number of orders) 70,000 100 300 400 Material receipts (number of receipts) 90,000 150 600 750 General factory (machine-hours) 250,000 12,000 28,000 40,000 Total Estimated Overhead $ 800,000

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