14 Dec Stillicum Corporation makes ultra light-weight bac
Stillicum Corporation makes ultra light-weight backpackingtents. Data concerning the company’s two product lines appearbelow: Deluxe Standard Direct materials per unit $ 63.00 $ 51.00Direct labor per unit $ 21.00 $ 17.20 Direct labor-hours per unit0.70 DLHs 1.40 DLHs Estimated annual production 10,000 units 50,000units The company has a traditional costing system in whichmanufacturing overhead is applied to units based on directlabor-hours. Data concerning manufacturing overhead and directlabor-hours for the upcoming year appear below: Estimated totalmanufacturing overhead $ 643,000 Estimated total direct labor-hours77,000 DLHs Required: 1. Determine the unit product costs of the Deluxe andStandard products under the company’s traditional costingsystem. 2. The company is considering replacing its traditional costingsystem with an activity-based absorption costing system that wouldhave the following three activity cost pools: Expected ActivityActivity Cost Pools and Activity Measures Estimated Overhead CostDeluxe Standard Total Supporting direct labor (direct labor-hours)$ 462,000 7,000 70,000 77,000 Batch setups (setups) 117,000 200 100300 Safety testing (tests) 64,000 30 70 100 Total manufacturingoverhead cost $ 643,000 Determine the unit product costs of theDeluxe and Standard products under the activity-based absorptioncosting system. . . .
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