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 $ 69.00 $ 27.00 Standard $ 57.00 $ 22.00 1.40 DLHS 50,000 units 0.70 DLHS 10,000 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 below: Estimated total manufacturing overhead Estimated total direct labor-hours $ 667,000 77,000 DLHS Required: 1. Determine the unit product costs of the Deluxe and Standard products under the company's traditional costing system. 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: Expected Activity Estimated Overhead Cost $ 462,000 135,000 70,000 $ 667,000 Activity Cost Pools (and Activity Measures) Supporting direct labor (direct labor-hours) Batch setups (setups) Safety testing (tests) Total 77,000 300 Deluxe 7,000 200 Standard 70,000 100 30 70 100 Total manufacturing overhead cost Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system.

Glover Company makes three products in a single facility. These products have the following unit product costs:     Product   A B C Direct materials $ 32.80 $ 49.30 $ 55.70 Direct labor   20.20   22.80   13.60 Variable manufacturing overhead   1.20   0.60   0.90 Fixed manufacturing overhead   13.50   9.10    9.70 Unit product cost $ 67.70 $ 81.80 $ 79.90     Additional data concerning these products are listed below.     Product   A B C Mixing minutes per unit   1.20   1.20   0.20 Selling price per unit $ 58.00 $ 80.40 $ 73.90 Variable selling cost per unit $ 0.60 $ 1.10 $ 2.30 Monthly demand in units   2,000   3,300   1,300     The mixing machines are potentially the constraint in the production facility. A total of 6,520 minutes are available per month on these machines. Direct labor is a variable cost in this company.   Required: a. How many minutes of mixing machine time would be required to satisfy demand for all three products? b. How much of…

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Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 5 pounds at $8.00 per pound Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at $5 per hour Total standard variable cost per unit $ 40.00 28.00 10.00 $ 78.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Variable Cost per Unit Sold Fixed Cost per Month $ 200,000 $ 100,000 $ 12.00 $ 3.00 S The planning budget for March was based on producing and selling 25,000 units. However, during March the company actually produced and sòld 30,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production. b. Direct-laborers worked 55,000 hours at a rate of $15.00 per hour. c. Total variable…