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Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the companys two product lines appear below: Deluxe Standard Direct materials per unit $ 68.00 $

Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the companys two product lines appear below:

Deluxe Standard
Direct materials per unit $ 68.00 $ 56.00
Direct labor per unit $ 26.00 $ 21.20
Direct labor-hours per unit 0.70 DLHs 1.40 DLHs
Estimated annual production 10,000 units 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 $451,000
Estimated total direct labor-hours 50,000 DLHs

Required:
1.

Determine the unit product costs of the Deluxe and Standard products under the companys traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places.)

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 Estimated Overhead Cost Deluxe Standard Total
Supporting direct labor (direct labor-hours) $ 250,000 10,000 40,000 50,000
Batch setups (setups) 132,000 200 100 300
Safety testing (tests) 69,000 30 70 100

Total manufacturing overhead cost $ 451,000

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.)

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