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Stillicum Corporation makes ultra light$-$weight backpacking tents. Data concerning the company's two product lines appear below:

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$\backslash$table$[[$Direct materials per unit,Deluxe,Standard$],[$Direct labor per unit,$$62\mathrm{.}00,$$$50\mathrm{.}00],[$Direct labor$-$hours per unit,$$20\mathrm{.}00,$$$16\mathrm{.}40],[$Estimated annual production,$0\mathrm{.}70$ DLHs$,1\mathrm{.}40$ DLHs$]]$

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

$$562,000$

$77,000$ DLHs

Required:

Determine the unit product costs of the Deluxe and Standard products under the company's traditional costing system.

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:

$\backslash$table$[[,$Estimated Overhead,Expected Activity,$],[$Activity Cost Pools $($and Activity Measures$),$Cost,Deluxe,Standard,Total$],[$Supporting direct labor $($direct labor$-$hours$),$$$385,000,7,000,70,000,77,000],[$Batch setups $($setups$),114,000,200,100,300],[$Safety testing $($tests$),63,000,30,70,],[$Total manufacturing overhead cost,$$562,000,,100,]]$

Determine the unit product costs of the Deluxe and Standard products under the activity$-$based absorption costing system.

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Determine the unit product costs of the Deluxe and Standard products under the activity$-$based absorption costing system.

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