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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
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 72.00 19.00 1.0 DLHs 10,000 units Standard 53.00 15.20 0.8 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 $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 Activity Cost Pools and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Safety testing (tests) Total manufacturing overhead cost Estimated Overhead Cost $ 200,000 75,000 50,000 $ 325,000 Deluxe 10,000 200 30 Standard 40,000 100 70 Total 50,000 300 100 Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system. 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.) Deluxe Standard Unit product cost Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system. 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 system. (Round your intermediate calculations and final answers to 2 decimal places.) Deluxe Standard Unit product cost
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