Managerial Accounting 14th Edition by Ray Garrison ,Eric Noreen ,Peter Brewer 4

Exercise 1

Activity-Based Costing Product Costs for External Reports
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:
Required:
I. 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 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:
Determine the unit product costs of the Deluxe and Standard products under the activity-based costing system.