Question
Furniture Specialties is a company that makes two types of dining tables: Simple and Futuristic. There are two types of direct materials: Pine and Mahogany
Furniture Specialties is a company that makes two types of dining tables: Simple and Futuristic. There are two types of direct materials: Pine and Mahogany woods. Direct manufacturing labour workers are hired on an hourly basis; no overtime is worked. In terms of manufacturing overhead costs, there are two manufacturing overhead cost pools and two cost drivers. The two manufacturing overhead cost pools are manufacturing operations overhead and machine setup overhead. The cost drivers for manufacturing overhead are: direct manufacturing labour-hours for manufacturing operations overhead cost and setup labour-hours for machine setup overhead cost. Nonmanufacturing costs consist of product design, marketing, and distribution costs.
The following data are available for the 2019 budget:
Direct Materials Rate
Pine $10 per meter square (m2)
Mahogany $15 per meter square (m2)
Direct Manufacturing labour rate $20 per hour
Quantity of Material for Each Product
Simple Table Futuristic Table
Pine 12 m2 15 m2
Mahogany 7 m2 9 m2
Direct Material Labour 5 hour 10 hours
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started