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