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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 Estimated total manufacturing overhead Estimated total direct labor-hours Deluxe $ 67.00 $ 25.00 0.70 DLHS 10,000 units Activity Cost Pools (and Activity Measures) Supporting direct labor (direct labor-hours) Batch setups (setups) Safety testing (tests) Total manufacturing overhead cost 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: Standard $ 55.00 $20.40 1.40 DLHs 50,000 units $ 505,000 77,000 DLHs 4 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: Cost $ 308,000 129,000 68,000 $ 505,000 Estimated Overhead Deluxe 7,000 200 30 Expected Activity Standard 70,000 100 70 Total 77,000 300 100
Determine the unit product cost of the Deluxe and Standard products under the activity-based absorption costing system
Complete this question by entering your answers in the tabs below. Determine the unit product costs of the Deluxe and Standard products 0 nder the activity-based absorption costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. Determine the unit product costs of the Deluxe and Standard products 0 nder the activity-based absorption costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Step by Step Solution
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