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Stockin Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers
Stockin Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs shouldnolonger be allocated to products.
Activity Pool | Department Costs | Cost driver |
Binding | $237,795.00 | Number of units |
Printing | 772,264.50 | Machine hours |
Product design | 197,760.00 | Change orders |
General | 937,180.50 | None |
Total overhead costs | $2,145,000.00 |
Other information is as follows:
Tablets | Books | |
Units | 76,400 | 19,100 |
Direct materials cost per unit | $4.00 | $12.00 |
Direct labor cost per unit | $5.00 | $10.00 |
Direct labor hours | 32,500 | 16,250 |
Machine hours | 150,100 | 112,575 |
Change orders | 2,060 |
4,120 |
Determine the unit product cost for tablets using the traditional costing system and the activity-based costing system ____________ ____________
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