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Gentry Cabinetry produces two models of home shelving, the Basic and the Mega. Data on operations and costs for November are: (10 points) Basic Mega
Gentry Cabinetry produces two models of home shelving, the Basic and the Mega. Data on operations and costs for November are: (10 points)
| Basic | Mega | Total |
Machine hours | 8,000 | 4,000 | 12,000 |
Direct labor hours | 6,000 | 4,000 | 10,000 |
Units produced | 1,000 | 250 | 1,250 |
Direct material costs | $20,000 | $7,500 | $27,500 |
Direct labor costs | 129,000 | 71,000 | 200,000 |
Manufacturing overhead costs |
|
| 348,200 |
Total costs |
|
| $575,700 |
- Required: Compute the unit cost for each model (Basic & Mega), assuming Gentry Cabinetry uses: A.) Direct labor hours to allocate overhead costs. B.) Direct labor costs to allocate overhead costs. C.) Machine hours to allocate overhead costs.
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