One of Turf Smart’s products is a small lawnmower. Two processing departments are involved in the mower’s production. The deck is assembled in one department, and a second department assembles and installs the engine. There was no beginning or ending work in process in either department on May 1. During May, the company incurred the following costs in the manufacture of 7,000 lawnmowers.

Instructions.
a. Compute the following per-unit costs for the month of May.
1. A deck assembly transferred to the Engine Department.
2. Assembling and installing an engine by the Engine Department.
3. A completed lawnmower.
4. Materials used in assembling a deck.
5. Direct labor cost of assembling and installing an engine.
b. Which of these unit costs would be most useful to management in evaluating the overall monthly efficiency of the Engine Department? Explain your reasoning.

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Direct materials. Direct labor Manufacturing overhead ... Deck Engine Department Department $196,000 455,000 49,000 35,000 98,000 84,000