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PAG. LO 6.3 Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit
PAG. LO 6.3 Box Springs, Inc., makes two sizes of box springs: twin and double. The direct 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 Driver Square feet of pine Square feet of quilting Square feet of filling Number of boxes Number of inspections Estimated Overhead 210,000 220,000 320,000 240,000 170,000 Use per Twin 5,000 120,000 500,000 800,000 12,000 Use per Double 2,000 100,000 300,000 400,000 5,000
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