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: Estimated Overhead Cost $ 385,000 132,000 69,000 $ 586,000 Activity Cost Pools (and Activity Measures) Supporting direct labor (direct labor-hours) Batch setups (setups) Safety testing (tests) Total manufacturing overhead cost Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system. Expected Activity Deluxe 7,000 200 30 Standard 70,000 100 70 Total 77,000 300 100
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: Estimated Overhead Cost $ 385,000 132,000 69,000 $ 586,000 Activity Cost Pools (and Activity Measures) Supporting direct labor (direct labor-hours) Batch setups (setups) Safety testing (tests) Total manufacturing overhead cost Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system. Expected Activity Deluxe 7,000 200 30 Standard 70,000 100 70 Total 77,000 300 100
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...
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![2
nts
eBook
eferences
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:
Estimated Overhead
Cost
Activity Cost Pools (and Activity Measures)
Supporting direct labor (direct labor-hours)
Batch setups (setups)
$ 385,000
Safety testing (tests)
132,000
69,000
Total manufacturing overhead cost
$ 586,000
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.
Required 1 Required 2
Unit product cost
Deluxe
Deluxe
7,000
200
30
Standard
Expected Activity
Standard
70,000
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.)
100
70
Total
77,000
300
100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F31c1d42d-bb9e-49bd-a4f2-2ab0a2891d91%2F1f8a9c08-a405-4d49-b738-5175d2d89d36%2Faywdfmh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2
nts
eBook
eferences
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:
Estimated Overhead
Cost
Activity Cost Pools (and Activity Measures)
Supporting direct labor (direct labor-hours)
Batch setups (setups)
$ 385,000
Safety testing (tests)
132,000
69,000
Total manufacturing overhead cost
$ 586,000
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.
Required 1 Required 2
Unit product cost
Deluxe
Deluxe
7,000
200
30
Standard
Expected Activity
Standard
70,000
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.)
100
70
Total
77,000
300
100
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