Question: Check my work 5 Exercise 2A-3 (Algo) Activity-Based Absorption Costing as an Alternative to Traditional Product Costing [LO2-5) Stillicum Corporation makes ultra light-weight backpacking tents.

 Check my work 5 Exercise 2A-3 (Algo) Activity-Based Absorption Costing as

Check my work 5 Exercise 2A-3 (Algo) 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. Deluxe $ 62.00 $ 20.00 0.70 DLHS 10,000 units Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production Standard $ 50.00 $ 16.40 1.40 DLHS 50,000 units eBook 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: ferences Estimated total manufacturing overhead Estimated total direct labor-hours $562,000 77,000 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 Estimated Overhead Activity Cost Pools (and Activity Measures) Cost Deluxe Standard Total Supporting direct labor (direct labor-hours) $385,000 7,080 70,000 77,000 Batch setups (setups) 114,000 200 100 300 Safety testing (tests) 63,000 30 70 100 Total manufacturing overhead cost $562,600 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. aw 11

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!