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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 Direct
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 $ 51.00 $ 19.00 0.70 DLHS 10,000 units Standard $ 49.00 $15.60 1.40 LHS 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 $481,000 77,000 DHS 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) Cost Deluxe Standard Total Supporting direct labor (direct labor-hours) $308,000 7,000 70,000 77,000 Batch setups (setups) 111,000 200 100 300 Safety testing (tests) 62,000 3e 70 100 Total manufacturing overhead cost $481,000 Determine the unit product costs of the Deluxe and Standard products under the activity based absorption costing system 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 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
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