Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below: Delux Direct materials per unit Direct labor per unit

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: Delux Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production $ 72.00 $ 19.00 $ 53.00 $ 15.20 1.0 DLHs .8 DLHs 10,000 units 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 Estimated total manufacturing overhead Estimated total direct labor-hours 325,000 50,000 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) 200,000 10,000 40,000 50,000 Batch setups (setups) Safety testing (tests) Total manufacturing overhead cost Cost Deluxe Standard Total 75,000 50,000 325,000 200 30 100 70 300 100 Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing systenm. Answer is complete but not entirely correct 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 cost9 90.50 xS 67.80 Required 1 Required 2> Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system. &Answer is complete but not entirely correct. 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 94.50S 67.00 K Required 1 Required2

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_2

Step: 3

blur-text-image_3

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

More Books

Students also viewed these Accounting questions

Question

How does e*Trade manage its customer relationships?

Answered: 1 week ago