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Part A Box Springs, Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $ 3 5 per

Part A
Box Springs, Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows:
Activity Cost Pools Driver Estimated Overhead Use per Queen Use per King
Framing Square feet of pine $150,0004,5003,000
Padding Square feet of quilting 156,00080,00040,000
Filling Square feet of filling 210,000150,00060,000
Labeling Number of boxes 190,00038,00038,000
Inspection Number of inspections 180,000120,00060,000
How much does each unit cost to manufacture?
Part B
Hayward Industries manufactures dining chairs and tables. The following information is available:
Dining Chairs Tables Total Cost
Machine setups 200600 $48,000
Inspections 250470 $72,000
Labor hours 2,6002,400
Hayward is considering switching from one overhead rate based on labor hours to activity-based costing.
Perform the following analyses for these two components of overhead:
Compute total machine setups and inspection costs assigned to each product, using a single overhead rate.
Compute total machine setups and inspection costs assigned to each product, using activity-based costing.
Comment on your findings.

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