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Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below: Deluxe Standard Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production Estimated total manufacturing overhead Estimated total direct labor-hours $ 57.00 $15.00 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: 0.70 DLHS 10,000 units Unit product cost $ 45.00 $ 12.40 Deluxe 1.40 DLHS 50,000 units. 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: Standard $ 619,000 77,000 DLHS Estimated Overhead. Cost Activity Cost Pools (and Activity Measures) Supporting direct labor (direct labor-hours) Batch setups (setups) $ 462,000 Safety testing (tests) 99,000 58,000 Total manufacturing overhead cost $ 619,000 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. Expected Activity Standard) 70,000 100 70 Deluxe 7,000 200 30 Required 1 Required 2 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.) Total 77,000 300 100

Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below: Deluxe Standard Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production Estimated total manufacturing overhead Estimated total direct labor-hours $ 57.00 $15.00 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: 0.70 DLHS 10,000 units Unit product cost $ 45.00 $ 12.40 Deluxe 1.40 DLHS 50,000 units. 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: Standard $ 619,000 77,000 DLHS Estimated Overhead. Cost Activity Cost Pools (and Activity Measures) Supporting direct labor (direct labor-hours) Batch setups (setups) $ 462,000 Safety testing (tests) 99,000 58,000 Total manufacturing overhead cost $ 619,000 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. Expected Activity Standard) 70,000 100 70 Deluxe 7,000 200 30 Required 1 Required 2 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.) Total 77,000 300 100

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 3E: The following data appeared in the accounting records of Craig Manufacturing Inc., which uses the...
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Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below: Standard Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production Estimated total manufacturing overhead Estimated total direct labor-hours Deluxe $ 57.00 $15.00 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: 0.70 DLHS 10,000 units Unit product cost Deluxe $ 45.00 $ 12.40 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: Complete this question by entering your answers in the tabs below. Standard 1.40 DLHS 50,000 units. $ 619,000 77,000 DLHS Estimated Overhead Cost Activity Cost Pools (and Activity Measures) Supporting direct labor (direct labor-hours) Batch setups (setups) $ 462,000 Safety testing (tests) 99,000 58,000 Total manufacturing overhead cost $ 619,000 Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system. Expected Activity Standard) 70,000 100 70 Deluxe 7,000 200 30 Required 1 Required 2 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.) Total 77,000 300 100
Transcribed Image Text:Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below: Standard Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production Estimated total manufacturing overhead Estimated total direct labor-hours Deluxe $ 57.00 $15.00 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: 0.70 DLHS 10,000 units Unit product cost Deluxe $ 45.00 $ 12.40 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: Complete this question by entering your answers in the tabs below. Standard 1.40 DLHS 50,000 units. $ 619,000 77,000 DLHS Estimated Overhead Cost Activity Cost Pools (and Activity Measures) Supporting direct labor (direct labor-hours) Batch setups (setups) $ 462,000 Safety testing (tests) 99,000 58,000 Total manufacturing overhead cost $ 619,000 Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system. Expected Activity Standard) 70,000 100 70 Deluxe 7,000 200 30 Required 1 Required 2 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.) Total 77,000 300 100
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