LeGaroutte Industries makes industrial pipe manufacturing equipment. Use direct-labor hours as the burden vehicle, and compute the
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LeGaroutte Industries makes industrial pipe manufacturing equipment. Use direct-labor hours as the burden vehicle, and compute the total cost per unit for each model given in the table. Total manufacturing indirect costs are $15,892,000, and there are 100,000 units manufactured per year for Model S, 50,000 for Model M, and 82,250for Model G.
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Model S Model G Item Direct-material costs Direct-labor costs Model M $3,800,000 600,000 $1,530,000 $2,105,000 380,000 20,000 420,000 Direct-labor hours 64,000 32,000
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