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Ch. 6 - HW 1. MAEA.06.01.ALGO 2. MA.EA.06.03.ALGO 3. MA.EA.06.07.ALGO 4. MAEA.06.10.ALGO 5. MA.EA.06.13.ALGO eBook Box Springs, Inc., makes two sizes of box springs: twin
Ch. 6 - HW 1. MAEA.06.01.ALGO 2. MA.EA.06.03.ALGO 3. MA.EA.06.07.ALGO 4. MAEA.06.10.ALGO 5. MA.EA.06.13.ALGO eBook 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 $40 per unit, and the labor cost is $55 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 Estimated Use per Use per Pools Driver Overhead Twin Double Framing Square Feet of Pine $180,000 5,000 1,000 Padding Square Feet of Quilting 210,000 120,000 90,000 Filling Square Feet of Filling 340,000 500,000 350,000 Labeling Number of Boxes 240,000 800,000 400,000 Inspection Number of Inspections 153,000 11,000 6,000 After grouping cost pools and estimating overhead and activities, Box Springs determined these rates: , : Purchasing (per order) $56 Utilities (per square foot) 3 Machine Setups (per machine hour) 9 Supervision (per direct labor hour) ) 6 It estimates there will be 5 orders in the next year, and those jobs will involve the following: 6. MA.PA.06.01.ALGO 7. MA.PA.06.06.ALGO 8. MA.PA.06.12.ALGO 9. MAPA.06.10.ALGO 10. MA.PA.06.07.ALGO Orders 5 Square Feet 210 Machine Hours 60 Direct Labor Hours 35 Direct Materials $1,600 Direct Labor Rate $20 What is the total cost of the jobs? Check My Work Progress: 10/10 Items Previous
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