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

 

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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 labor-hours per unit Estimated annual production Deluxe $ 66.00 $ 24.00 Standard $ 54.00 $ 19.60 0.70 DLHS 10,000 units 1.40 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 Required: $ 578,000 77,000 DLHS 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: Supporting direct labor (direct labor-hours) Activity Cost Pools (and Activity Measures) Batch setups (setups) Safety testing (tests) Total manufacturing overhead cost Estimated Overhead Expected Activity Cost $ 385,000 126,000 Deluxe 7,000 Standard Total 200 70,000 100 77,000 300 67,000 30 70 100 $ 578,000 Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system. 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 $ 66.00 $ 24.00 Standard $ 54.00 $ 19.60 0.70 DLHS 10,000 units 1.40 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 Required: $ 578,000 77,000 DLHS 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: Supporting direct labor (direct labor-hours) Activity Cost Pools (and Activity Measures) Batch setups (setups) Safety testing (tests) Total manufacturing overhead cost Estimated Overhead Expected Activity Cost $ 385,000 126,000 Deluxe 7,000 Standard Total 200 70,000 100 77,000 300 67,000 30 70 100 $ 578,000 Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system.

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