Question
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
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 $ 54.00 $ 12.00 0.70 DLHS 10,000 units Standard $42.00 $ 10.00 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. Estimated total manufacturing overhead Estimated total direct labor-hours $530,000 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: Activity Cost Pools (and Activity Measures). Supporting direct labor (direct labor-hours) Batch setups (setups) Safety testing (tests) Total manufacturing overhead cost Estimated Overhead Expected Activity Cost $385,000 Deluxe 7,000 Standard Total 70,000 77,000 90,000 200 100 300 30 70 100 55,000 $530,000 Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system. Dru 9 of 9 Next Complete this question by entering your answers in the tabs below. 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.) Unit product cost Deluxe Standard Required! Required 2 > < Prev 9 of 9 Next Search Complete this question by entering your answers in the tabs below. orption costing system. 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.) Unit product cost Deluxe Standard < Required 1 quired 23 < Prev 9 of 9 Next
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