Question
Coronado is a book publisher that reissues old titles. The company offers these books with either a standard machine-glued hard cover or a deluxe, hand-embossed,
Coronado is a book publisher that reissues old titles. The company offers these books with either a standard machine-glued hard cover or a deluxe, hand-embossed, hand-stitched, leather cover. Coronado currently allocates overhead to the books based on direct labor hours. A recent activity analysis conducted by the controller revealed the following information.
Standard Edition | Deluxe Edition | ||||
---|---|---|---|---|---|
Units produced | 476,000 | 15,000 | |||
Direct labor hours | 476,000 | 46,500 | |||
Printing press hours | 47,600 | 1,500 | |||
Sales orders | 9,520 | 16,500 |
(a) Calculate the following for each product: (Round answers to 2 decimal places, e.g. 15.25.)
Standard edition | Deluxe edition | ||||
---|---|---|---|---|---|
i. | Direct labor hours per unit | enter the direct labor hours per unit DLH / unit | enter the direct labor hours per unit DLH / unit | ||
ii. | Printing press hours per unit | enter the printing press hours per unit PPH / unit | enter the printing press hours per unit PPH / unit | ||
iii. | Sales orders per unit | enter the sales orders per unit order / unit | enter the sales orders per unit order / unit |
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