Question
Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $35 is
Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $35 is used in direct labor, while the direct material for the double is $35 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 10,000 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 Twin Use per Double Framing Square Feet of Pine $210,000 6,000 1,000 Padding Square Feet of Quilting 220,000 110,000 110,000 Filling Square Feet of Filling 320,000 450,000 350,000 Labeling Number of Boxes 120,000 750,000 450,000 Inspection Number of Inspections 187,000 12,000 5,000 How much does each unit cost to manufacture? Do not round intermediate computations but round final answers for the fields below to the nearest whole number. Total Cost per Unit Twin Double Direct Material $ fill in the blank 1 $ fill in the blank 2 Direct Labor Cost fill in the blank 3 fill in the blank 4 Overhead fill in the blank 5 fill in the blank 6 Total per Unit $ fill in the blank 7 $ fill in the blank 8
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