Answer : Requirement 1 | Deluxe | Standard | ||||
Unit product cost | 78.96 | 69.13 | ||||
Answer : Requirement 2 | Deluxe | Standard | ||||
Unit product cost | 86.07 | 67.71 | ||||
Detailed workings for above answers | ||||||
Calculation of unit product cost under traditional costing system | ||||||
Calculation of overhead rate on the basis of direct labor hours | ||||||
Calculation of overhead rate on Direct labor hours | ||||||
Estimated Overhead | =/ | Total direct labor hours | = | overhead rate | ||
Overhead rate | 546000 | / | 77000 | = | $ 7.09 | |
Calculation of unit product cost of Deluxe | ||||||
Rate | ||||||
Direct Material | 10000 | units | 58 | $ 580,000 | ||
Direct Labor | 10000 | units | 16 | $ 160,000 | ||
Overhead =10000*0.70 | 7000 | Hours | 7.09 | $ 49,630 | ||
Total Production cost of Delux | $ 789,630 | |||||
Unit produced | 10000 | Units | ||||
Product cost per unit | =789630/10000 | 78.96 | Per unit | |||
Calculation of unit product cost of Standard | ||||||
Rate | ||||||
Direct Material | 50000 | units | 46 | $ 2,300,000 | ||
Direct Labor | 50000 | units | 13.2 | $ 660,000 | ||
Overhead = 50000*1.40 | 70000 | Hours | 7.09 | $ 496,300 | ||
Total Production cost of Standard | $ 3,456,300 | |||||
Unit produced | 50000 | Units | ||||
Product cost per unit | =3456300/50000 | 69.13 | Per unit | |||
Calculation of unit product cost under Activity Based absorpton system | ||||||
Calculation of overhead rate on the basis of direct labor hours | ||||||
Calculation of overhead rate on ABC basis | ||||||
Estimated Overhead | =/ | Total Activity | = | overhead rate | ||
Supporting direct labor | 385000 | =/ | 77000 | = | $ 5 | per hour |
Batch setups | 102000 | =/ | 300 | = | $ 340 | per setup |
Safety testing | 59000 | =/ | 100 | = | $ 590 | per test |
Calculation of overhead for Deluxe | ||||||
Activity for Delux | x | Rate | = | overhead | ||
Supporting direct labor | 7000 | x | 5 | = | $ 35,000 | |
Batch setups | 200 | x | 340 | = | $ 68,000 | |
Safety testing | 30 | x | 590 | = | $ 17,700 | |
Total | $ 120,700 | |||||
Calculation of unit product cost of Deluxe | ||||||
Rate | ||||||
Direct Material | 10000 | units | 58 | $ 580,000 | ||
Direct Labor | 10000 | units | 16 | $ 160,000 | ||
Overhead | Calculated above | $ 120,700 | ||||
Total Production cost of Delux | $ 860,700 | |||||
Unit produced | 10000 | Units | ||||
Product cost per unit | =78963/10000 | 86.07 | Per unit | |||
Calculation of overhead for Standard | ||||||
Activity for Delux | x | Rate | = | overhead | ||
Supporting direct labor | 70000 | x | $ 5.00 | = | $ 350,000 | |
Batch setups | 100 | x | $ 340.00 | = | $ 34,000 | |
Safety testing | 70 | x | $ 590.00 | = | $ 41,300 | |
Total | $ 425,300 | |||||
Calculation of unit product cost of Standard | ||||||
Rate | ||||||
Direct Material | 50000 | units | 46 | $ 2,300,000 | ||
Direct Labor | 50000 | units | 13.2 | $ 660,000 | ||
Overhead | Calculated above | $ 425,300 | ||||
Total Production cost of Delux | $ 3,385,300 | |||||
Unit produced | 50000 | Units | ||||
Product cost per unit | =3385300/50000 | 67.71 | Per unit | |||
Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below:...
Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below: Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production Deluxe $ 68.00 $ 26.00 0.70 DLHS 10,000 units Standard $ 56.00 $ 21.20 1.40 DLHs 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...
Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below. Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production Deluxe $ 68.00 $ 26.00 0.70 DLHS 10,000 units Standard $ 56.00 $ 21.20 1.40 DLHS 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...
Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below: Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production Deluxe $ 67.00 $ 25.00 0.70 DLHS 10,000 units Standard $ 55.00 $ 20.40 1.40 DLHS 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...
Check Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below: Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production Deluxe $ 66.00 $ 24.00 0.70 DLHS 10,000 units Standard $ 54.00 $ 19.60 1.40 DLHS 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...
Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company’s two product lines appear below: Deluxe Standard Direct materials per unit $ 50.00 $ 38.00 Direct labor per unit $ 8.00 $ 6.80 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...
Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company’s two product lines appear below:DeluxeStandardDirect materials per unit$63.00$51.00Direct labor per unit$21.00$17.20Direct labor-hours per unit0.70DLHs1.40DLHsEstimated annual production10,000units50,000unitsThe 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$643,000Estimated total direct labor-hours77,000DLHsRequired:1. Determine the unit product costs of the Deluxe and Standard products under the company’s traditional costing...
Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company’s two product lines appear below: Deluxe Standard Direct materials per unit $ 52.00 $ 40.00 Direct labor per unit $ 10.00 $ 8.40 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...
Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company’s two product lines appear below: Deluxe Standard Direct materials per unit $ 51.00 $ 39.00 Direct labor per unit $ 9.00 $ 7.60 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...
Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below: Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production Deluxe $ 68.00 $ 26.00 0.70 DLHS 10,000 units Standard $ 56.00 $ 21.20 1.40 DLHS 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...
Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below: 25 points Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production Deluxe $ 51.00 $ 9.00 0.70 DLHS 10,000 units Standard $ 39.00 $ 7.60 1.40 DLHS 50,000 units eBook Print 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...