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10) Toys Inc. produces ragdolls and toy cars in the same department. The production costs and estimated manufacturing costs (beginning of January) are as follows:
10) Toys Inc. produces ragdolls and toy cars in the same department. The production costs and estimated manufacturing costs (beginning of January) are as follows: Item Quantity Direct labor Direct materials Manufacturing overhead Total manufacturing costs Production-hours Ragdolls 10,000 R$ 540,000.00 R$ 240,000.00 ? Toy cars 10,000 R$ 170,000.00 R$ 584,000.00 ? Total 20,000 R$ 710,000.00 R$ 824,000.00 R$ 2,160,000.00 ? ? R$ 3,694,000.00 9,600 6,000 15,600 Required: a) Complete the estimation of manufacturing overhead and total manufacturing costs using allocation bases. The choice of allocation bases depends on the information available on the previous table. Next, calculate the unit cost for each product. b) Analyze what would happen prices if they were based on each unit cost calculated on item a
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