Question: apter 02 Homework Help Exercise 2A-3 Activity-Based Absorption Costing as an Alternative to Traditional Product Costing [LO2- 5] Stillicum Corporation makes ultra light-weight backpacking tents.
apter 02 Homework Help Exercise 2A-3 Activity-Based Absorption Costing as an Alternative to Traditional Product Costing [LO2- 5] Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below. Delu Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production $ 58.00 $ 16.00 46.00 $ 13.20 0.70 DLHS 10,000 units 50,000 units 1.40 DLRS 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 $546,000o Estimated total manufacturing overhead Estimated total direct labor-hours 77,000 DLHS Required: 1. Determine the unit produ?t 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: Estinated overhead tivit Supporting direct labor (direct labor-hours) Batch setups (setups) 385,000 7,000 70,000 77,000 300 102,000 200 100
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