material for the twin is $25 per unit and $40 is used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: Activity Cost Pools Framing Padding Filling Labeling Inspection Activity Cost Pools Driver Square feet of pine Square feet of quilting Framing Padding Filling Labeling Inspection Square feet of filling Number of boxes Number of inspections How much does each unit cost to manufacture? Solution Activity Cost Pools Driver Estimated Overhead Activity Rate 210,000 220,000 320,000 240,000 170,000 Estimated Overhead I Twin Units Use per Twin 5,000 120,000 500,000 800,000 12,000 Twin Activity Costs Use per Double 2,000 100,000 300,000 400,000 5,000 Total Driver Double Units Activity Rate Double Activity Costs

material for the twin is $25 per unit and $40 is used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture? Solution Chapter 6: Activity-Based, Variable, and Absorption Costing Solution \begin{tabular}{|c|c|c|c|c|} \hline ActivityCostPools & Driver & EstimatedOverhead & TotalDriver & ActivityRate \\ \hline Framing & & & & \\ \hline Padding & & & & \\ \hline Filling & & & & \\ \hline Labeling & & & & \\ \hline Inspection & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline Activity Cost Pools & ActivityRate & Twin Units & TwinActivityCosts & DoubleUnits & DoubleActivityCosts \\ \hline \multirow{2}{*}{\multicolumn{6}{|c|}{FramingPadding}} \\ \hline & & & & & \\ \hline \multicolumn{6}{|l|}{ Filling } \\ \hline \multicolumn{6}{|l|}{ Labeling } \\ \hline Inspection & & I & & & \\ \hline TotalNumberofunits & & & & & \\ \hline \end{tabular}