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1. Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and
1. Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 is used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: Activity Cost Pools Driver Estimated Overhead Use per Use per Twin Double Framing Square feet of pine 210,000 5,000 2,000 Padding Square feet of quilting 220,000 120,000 100,000 Filling Square feet of filling 320,000 500,000 300,000 Labeling Number of boxes 240,000 800,000 400,000 Inspection Number of inspections. 170,000 12,000 5,000 How much does each unit cost to manufacture?
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