Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear belovw: Deluxe Standard Direct materials per unit Direct labor per
Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear belovw: Deluxe Standard Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production $ 64.00 $22.00 $ 52.00 $18.00 0.70 DLHs 10,000 units 50,000 units 1.40 DLHs 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 $570,000 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 Supporting direct labor (direct labor-hours) Batch setups (setups) Safety testing (tests) Total manufacturing overhead cost Cost Deluxe Standard Total $385,000 120,000 65,000 $570,000 7,000 70,000 77,000 300 100 200 30 100 70 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 1Required 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 1 Required 2> 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 1Required 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started