Stillicum Corporation makes ultra light-weight backpacking tents. Data concernin

Question

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 69.00 $27.00 57.0 $ 22.00 e.70 DLHs 10,eee units 5e,000 units 1.40 DLHs 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 Estimated total direct labor-hours $667,800 77,8e0 DLHs

Explanation / Answer

1) overhead rate =Estimated total MOH/Estimated total DLH's 667,000/77,000 8.66 overhead cost per unit Deluxe   =( 8.662338*.70*10,000)/10000 6.06 Standard = (8.662338*1.40*50000)/50000 12.12 unit product cost Deluxe Standard Direct materials 69.00 57.00 direct labor 27.00 22.00 overhead cost per unit 6.06 12.12 total unit product cost 102.06 91.12 answer 2) overhead rate Supporting direct labor 462000/77000 6 Batch setups 135000/300 450 Safety testing 70000/100 700 total manufacturing overhead cost overhead cost per unit Deluxe Standard Supporting direct labor 42000 420000 Batch setups 90000 45000 Safety testing 21000 49000 total overhead cost 153000 514000 units produced 10,000 50,000 cost per unit 15.3 10.28 unit product cost Deluxe Standard Direct materials 69.00 57.00 direct labor 27.00 22.00 overhead cost per unit 15.30 10.28 total unit product cost 111.30 89.28 answer

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