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Stockin Company produces tablets and books. Total overhead costs traditionally have been allocated ...

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Stockin Company produces tablets and books. Total overhead costs traditionally have been allocated ...

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 Pool

Department Costs

Cost Driver

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

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

Tablets

Books

Units	75,000	18,750
Direct materials cost per unit	$4.00	$12.00
Direct labor cost per unit	$5.00	$10.00
Direct labor hours	30,000	15,000
Machine hours	150,000	112,500
Change orders	1,875	3,750

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.

Textbook

Managerial Accounting

Edition: 4^th

Author: Davis

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traumajeff

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gisellerol Author

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Thanks

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this is exactly what I needed

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