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Determine the unit product costs of the deluxe

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Reference no: EM132466885

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

Direct materials per unit Direct labor per unit

Direct labor-hours per unit
Estimated annual production

Deluxe                       Standard

                   $ 51.00            $ 39.00

           9.00           $          7.60

0.70 DLHs               1.40 DlMs

10,000 units          50,000 units

The company has a traditional costing system in which manufacturing overhead is applied to units based on concerning manufacturing overhead and direct labor-hours for the upcoming year appear below:

Estimated total manufacturing overhead                    $595,000
Estimated total direct labor-hours                             77,000 D1Ffs

Required:

Question 1. Determine the unit product costs of the Deluxe and Standard products under the company's traditional costing

Question 2. The company is considering replacing its traditional costing system with an activity-based absorption cost have the following three activity cost pools

Reference no: EM132466885

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