Stockin Company produces Tablets and Books.Total overhead costs traditionally have been allocated on the basis of direct labor hours.After implementing activity-based costing,managers determined the following cost pools and cost drivers.They also decided that general costs should no longer be allocated to products.
Other information is as follows:

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.

Question

Stockin Company produces Tablets and Books.Total overhead costs traditionally have been allocated on the basis of direct labor hours.After implementing activity-based costing,managers determined the following cost pools and cost drivers.They also decided that general costs should no longer be allocated to products.
  Other information is as follows:

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.

Quizplus · Accepted Answer

The Answer of Stockin Company produces Tablets and Books.Total overhead costs traditionally have been allocated on the basis of direct labor hours.After implementing activity-based costing,managers determined the following cost pools and cost drivers.They also decided that general costs should no longer be allocated to products.
  Other information is as follows:

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.

Stockin Company Produces Tablets and Books