Pryad Corporation makes ultra-lightweight backpacking tents. Data concerning the

Question

Pryad Corporation makes ultra-lightweight backpacking tents. Data concerning the company's two product lines appear below:

      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:

Determine the unit product costs of the Deluxe and Standard products under the company's traditional costing system. (Round your intermediate and final answers to 2 decimal places. Omit the "$" sign in your response.)

The company is considering replacing its traditional costing system for determining unit product costs for external reports with an activity-based costing system. The activity-based costing system would have the following three activity cost pools:

Expected Activity

      Determine the unit product costs of the Deluxe and Standard products under the activity-based costing system. (Round your intermediate and final answers to 2 decimal places. Omit the "$" sign in your response.)

Pryad Corporation makes ultra-lightweight backpacking tents. Data concerning the company's two product lines appear below:

Explanation / Answer

Direct material cost 1606000 3496000

(22000*73/ 76000*46)

Direct labor cost 143000 342000

(22000*0. 5*13/76000*0. 5/9)   

Manufacturing overhead cost 68200 235600

(22000*0. 5*6. 2/76000*0. 5/6. 2)

Total 1817200 4073600

Units 22000 76000

Cost per unit 82. 6 53. 6

Part b

Labor cost per unit $3. 5 (171500/49000)

Batch cost per unit $ 220

(61609/ 280)

Set up cost per unit $ 707

(70700/100)

Labor cost 38500 133000

Batch cost 39600 22000

Set cost 16968 53732

Total 95068 208732

Units per unit 4. 32 2. 74

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