Pryad Corporation makes ultra-lightweight backpacking tents.Data concerning the company's two product lines appear below:
Deluxe Standard Direct materials perunit $ 73 $ 46 Direct labor perunit $ 13.00 $ 9.00 Direct labor-hoursper unit .50 DLHs 0.50 DLHs Estimated annualproduction 22,000 units 76,000 units
The company has atraditional costing system in which manufacturing overhead isapplied to units based on direct labor-hours. Data concerningmanufacturing overhead and direct labor-hours for the upcoming yearappear below:
Estimated totalmanufacturing overhead $303,800 Estimated totaldirect labor-hours 49,000 DLHs
Required: 1. Determine the unit product costs of the Deluxe and Standardproducts under the company's traditional costing system.(Round your intermediate and final answers to 2 decimalplaces. Omit the "$" sign in your response.)
Deluxe Standard Unit productcost $ $
2. The company is considering replacing its traditional costingsystem for determining unit product costs for external reports withan activity-based costing system. The activity-based costing systemwould have the following three activity cost pools:
Expected Activity
Activities andActivity Measures Estimated
Overhead Cost Deluxe Standard Total Supporting directlabor (direct labor-hours) $ 171,500 11,000 38,000 49,000 Batch setups(setups) 61,600 180 100 280 Safety testing(tests) 70,700 24 76 100 Total manufacturingoverhead cost $ 303,800
Determine the unit productcosts of the Deluxe and Standard products under the activity-basedcosting system. (Round your intermediate and final answersto 2 decimal places. Omit the "$" sign in yourresponse.)
Deluxe Standard Unit productcost $ $
Pryad Corporation makes ultra-lightweight backpacking tents.Data concerning the company's two product lines appear below: |
| Deluxe | Standard | |||||
| Direct materials perunit | $ | 73 | $ | 46 | ||
| Direct labor perunit | $ | 13.00 | $ | 9.00 | ||
| Direct labor-hoursper unit | .50 | DLHs | 0.50 | DLHs | ||
| Estimated annualproduction | 22,000 | units | 76,000 | units | ||
The company has atraditional costing system in which manufacturing overhead isapplied to units based on direct labor-hours. Data concerningmanufacturing overhead and direct labor-hours for the upcoming yearappear below: |
| Estimated totalmanufacturing overhead | $303,800 | |
| Estimated totaldirect labor-hours | 49,000 | DLHs |
| Required: | |
| 1. | Determine the unit product costs of the Deluxe and Standardproducts under the company's traditional costing system.(Round your intermediate and final answers to 2 decimalplaces. Omit the "$" sign in your response.) |
| Deluxe | Standard | |
| Unit productcost | $ | $ |
| 2. | The company is considering replacing its traditional costingsystem for determining unit product costs for external reports withan activity-based costing system. The activity-based costing systemwould have the following three activity cost pools: |
Expected Activity | |||||
| Activities andActivity Measures | Estimated Overhead Cost | Deluxe | Standard | Total | |
| Supporting directlabor (direct labor-hours) | $ | 171,500 | 11,000 | 38,000 | 49,000 |
| Batch setups(setups) | 61,600 | 180 | 100 | 280 | |
| Safety testing(tests) | 70,700 | 24 | 76 | 100 | |
| Total manufacturingoverhead cost | $ | 303,800 | |||
Determine the unit productcosts of the Deluxe and Standard products under the activity-basedcosting system. (Round your intermediate and final answersto 2 decimal places. Omit the "$" sign in yourresponse.) |
| Deluxe | Standard | |
| Unit productcost | $ | $ |
Related questions
Rocky Mountain Corporation makes two types of hikingbootsâXactive and Pathbreaker. Data concerning these two productlines appear below:
| Xactive | Pathbreaker | |||||
| Direct materials per unit | $ | 65.80 | $ | 52.00 | ||
| Direct labor cost per unit | $ | 19.20 | $ | 14.00 | ||
| Direct labor-hours per unit | 1.4 | DLHs | 1 | DLHs | ||
| Estimated annual production and sales | 35,000 | units | 85,000 | units | ||
The company has a conventional costing system in whichmanufacturing overhead is applied to units based on directlabor-hours. Data concerning manufacturing overhead and directlabor-hours for the upcoming year appear below: |
| Estimated total manufacturing overhead | $2,814,000 | |
| Estimated total direct labor-hours | 134,000 | DLHs |
| Required: |
| 1-a. | Compute thepredetermined overhead rate based on direct labor-hours.(Round the intermediate calculations and final answer totwo decimal places.) | |
| 1-b. | Using thepredetermined overhead rate and other data from the problem,determine the unit product cost of each product. (Round theintermediate calculations and final answer to two decimalplaces.) | |
| 2. | The company is considering replacing its conventional costingsystem with an activity-based costing system that would assign itsmanufacturing overhead to the following four activity costpools: |
| Estimated OverheadCost | Expected Activity | ||||
| Activity CostPools and Activity Measures | Xactive | Pathbreaker | Total | ||
| Supporting direct labor (direct labor-hours) | $ | 1,038,500 | 49,000 | 85,000 | 134,000 |
| Batch setups (setups) | 1,100,000 | 300 | 200 | 500 | |
| Product sustaining (number of products) | 582,500 | 1 | 1 | 2 | |
| General factory (machine-hours) | 93,000 | 3,500 | 8,500 | 12,000 | |
| Total manufacturing overhead cost | $ | 2,814,000 | |||
Determine the activity rate for each of the four activity costpools. (Round your final answers to 2 decimalplaces.) | |
| 3. | Using the activity rates and other data from the problem,determine the unit product cost of each product. (Round theintermediate calculations and final answer to two decimalplaces.) |
