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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 $ 62.00 $ 20.00 Standard $ 50.00 $ 16.40 0.70 DLHS 10,000 units 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 $562,000 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 Deluxe Expected Activity Standard Total 7,000 70,000 77,000 200 30 100 300 70 100 Cost $ 385,000 114,000 63,000 $562,000 < Prev 9 of 9 Next Q Search Chec Total manufacturing overhead cost $300,000 Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing 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 1 Required 2 > < Prev 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 activity-based absorption costing syste (Round your intermediate calculations and final answers to 2 decimal places.) Unit product cost Deluxe Standard < Required 1 aired 25
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