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
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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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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