Home / Questions / Check my workCheck My Work button is now enabledItem4Item 4 25 points Stillicum Corporatio...
Check my workCheck My Work button is now enabledItem4Item 4 25 points
Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company’s two product lines appear below:
| Deluxe | Standard | |||||
| Direct materials per unit | $ | 53.00 | $ | 41.00 | ||
| Direct labor per unit | $ | 11.00 | $ | 9.20 | ||
| Direct labor-hours per unit | 0.70 | DLHs | 1.40 | DLHs | ||
| Estimated annual production | 10,000 | units | 50,000 | units | ||
|
||||||
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:
| Estimated total manufacturing overhead | $ | 603,000 | |
| Estimated total direct labor-hours | 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 | |||||
| Activity Cost Pools and Activity Measures | Estimated Overhead Cost |
Deluxe | Standard | Total | |
| Supporting direct labor (direct labor-hours) | $ | 462,000 | 7,000 | 70,000 | 77,000 |
| Batch setups (setups) | 87,000 | 200 | 100 | 300 | |
| Safety testing (tests) | 54,000 | 30 | 70 | 100 | |
| Total manufacturing overhead cost | $ | 603,000 | |||
|
|||||
Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system
Jun 25 2020 View more View Less
What are IKEA’s competitive priorities?
Aug 04 2020One of the primary advantages of diversification is sharing core competencies. In order for diversification to be most successful, it is important that (A) The methods ...
Mar 23 2018Using diaries for many week, a study on the lifestyles of visually impaired students was conducted The student kept track of many lifestyle variable including how many ho...
May 05 2020A firm issues a zero-coupon bond with a face value of$ l ,OOO, maturing in five years. Bonds with similar risk are currently yielding 5 percent per year. What is the val...
May 26 2020Determine the mass moment of inertia of the steel machine component shown with respect to the �-axis, knowing that the density of steel is 7800 kg/m3 .Determine the mass ...
May 05 2020Consider a system of two infinite queues in series, where each of the two service facilities has a single server. All service times are independent and have an exponentia...
Aug 06 2020Q 1: There are four factors contributing to successful VENTURE: Opportunity, Resource, Entrepreneur and Organizations (OREO). Which one do you think is more important tha...
Aug 27 2020Which one of the following can be called as a peripheral? (a) Control unit (b) Arithmetic unit (c) Speaker ...
Jan 08 2018Which of the following will increase the duration of the operating cycle? [A]Increase in the raw material storage period [B]Decrease in the average collection period [...
Jan 01 2018What effect does a lower elasticity of demand have on the wage and employment outcomes for the employer and the union? How do technological changes affect the relative ba...
Jun 05 2020