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Capable Golf Cart, Inc. (CGC) manufactures two models of golf cart: LX and EX. The budget data for next month is available. LX EX Total

Capable Golf Cart, Inc. (CGC) manufactures two models of golf cart: LX and EX. The budget data for next month is available.

LX

EX

Total

Units produced

50

30

80

Direct labor hours

2,000

3,000

5,000

Machine hours

1,500

1,200

2,700

Direct materials

$125,000

$90,000

$215,000

Direct labor

90,000

60,000

150,000

Manufacturing overhead

202,500

Total

$567,500

Required:

  1. Compute the reported unit cost for each product if direct labor hours are used as the allocation base.
  2. Compute the reported unit cost for each product if direct labor costs are used as the allocation base.
  3. Compute the reported unit cost for each product if machine hours are used as the allocation base.

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