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Stillicum Corporation makes ultra light - weight backpacking tents. Data concerning the company s two product lines appear below: Deluxe Standard Direct materials per unit
Stillicum Corporation makes ultra lightweight backpacking tents. Data concerning the companys two product lines appear below:
Deluxe Standard
Direct materials per unit $ $
Direct labor per unit $ $
Direct laborhours per unit DLHs DLHs
Estimated annual production units units
The company has a traditional costing system in which manufacturing overhead is applied to units based on direct laborhours. Data concerning manufacturing overhead and direct laborhours for the upcoming year appear below:
Estimated total manufacturing overhead $
Estimated total direct laborhours DLHs
Required:
Determine the unit product costs of the Deluxe and Standard products under the companys traditional costing system.
The company is considering replacing its traditional costing system with an activitybased absorption costing system that would have the following three activity cost pools:
Activity Cost Pools and Activity Measures Estimated Overhead Cost Expected Activity
Deluxe Standard Total
Supporting direct labor direct laborhours $
Batch setups setups
Safety testing tests
Total manufacturing overhead cost $
Determine the unit product costs of the Deluxe and Standard products under the activitybased absorption costing system.
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