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Author Question: Stockin Company produces tablets and books. Total overhead costs traditionally have been allocated ... (Read 10 times)

Mscarter

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Stockin Company produces tablets and books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. As part of the process of implementing activity-based costing, managers determined the following cost pools and cost drivers.

Activity PoolDepartment CostsCost Driver
Binding$   247,500Number of units
Printing   798,000Machine hours
Product design   191,250Change orders
General     608,250None
Total overhead costs$1,845,000

The company determined it will not allocate general costs. Other information is as follows:

TabletsBooks
Units75,00018,750
Direct materials cost per unit$4.00$12.00
Direct labor cost per unit$5.00$10.00
Direct labor hours30,00015,000
Machine hours150,000112,500
Change orders1,8753,750
Required:

a.Determine the unit product cost for Tablets using the traditional costing system.
b.Determine the unit product cost for Tablets using the activity-based costing system.


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Marked as best answer by Mscarter on Feb 5, 2023

athenaheim

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Mscarter

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Reply 2 on: Feb 5, 2023
Wow, this really help


FergA

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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