Help Save&Exit; Submit 4 Check my work n makes ultra light-weight backpacking te
ID: 2522286 • Letter: H
Question
Help Save&Exit; Submit 4 Check my work n makes ultra light-weight backpacking tents. Data concening the company's two product lines appear below 5 points Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production $ 66.00 $24.00 $ 54.00 $ 19.60 0.70 DLR 10,000units 50,000 units 1.40 DIR Print I costing system in which menufacturing overhead is applied to units besed on direct labor-hours. Data References concerning manufacturing overhead and direct labor-hours for the upcoming year Estimated total manufacturing overhoad Estimated total direct labor-hour $578,000 7 000 DEE Required 1. Determine the unit product costs of the Deluxe and Stendard products under the company's traditional costing system. 2. The company is considering replacing its tracitional costing system with an actvity-based absorption costing system that have the following three activity cost pools: Est irated ? Prev 40, 5lll Next >Explanation / Answer
1) overhead rate =Estimated total MOH/Estimated total DLH's 578000/77000 7.51 overhead cost per unit Deluxe =(7.51*.70*10,000)/10000 5.25 Standard = (7.51*1.40*50000)/50000 10.51 unit product cost Deluxe Standard Direct materials 66.00 54.00 direct labor 24.00 19.60 overhead cost per unit 5.25 10.51 total unit product cost 95.25 84.11 answer 2) overhead rate Supporting direct labor 385000/77000 5 Batch setups 126000/300 420 Safety testing 67000/100 670 total manufacturing overhead cost overhead cost per unit Deluxe Standard Supporting direct labor 35000 350000 Batch setups 84000 42000 Safety testing 20100 46900 total overhead cost 139100 438900 units produced 10,000 50,000 cost per unit 13.91 8.778 unit product cost Deluxe Standard Direct materials 66.00 54.00 direct labor 24.00 19.60 overhead cost per unit 13.91 8.78 total unit product cost 103.91 82.38 answer
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