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box springs, Inc., makes two sizes of boxsprings: twin and double. The direct material for the twin is $25 per unit and 40 is used
box springs, Inc., makes two sizes of boxsprings: twin and double. The direct material for the twin is $25 per unit and 40 is used in direct labor, while the direct labor for the double is $35 per unit, the labor cost is $50 per unit. Boxsprings estimates it'll make 5000 twins and 10,000 doubles in the next year. It is estimated the overhead for each cost pool and cost driver activities as follow
Use per Use per Activity Cost Pools Estimated Overhead Driver Twin Double Square Feet of Pine Framing Padding Square Feet of Quilting Square Feet of Filling 3,000 110,000 300,000 400,000 4,000 $225,000 6,000 230,000 120,000 340,000 550,000 250,000 850,000 170,000 13,000 Filling Labeling Inspection Number of Boxes Number of Inspections Step by Step Solution
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