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please help me answer a-e with details on how you got there. thank you! Company: MUSICTO MYEARS, INC. You are a middle manager of Music
please help me answer a-e with details on how you got there. thank you!
Company: MUSICTO MYEARS, INC. You are a middle manager of Music To My Ears, Inc., a manufacturer and seller of electronic keyboard instruments, digital pianos, and other musical electronics. You are primarily responsible for two products sold by Music To My Ears, made in L.A. One is a standard electronic keyboard that sells for $920 and in constructed from medium-grade materials. The other model is a customized digital piano. The digital piano sells for $1,275. Both instruments require 12 hours of direct labor to produce, but the digital piano is manufactured by more experienced workers who are paid at a higher rate. Selected information regarding sales, production, and cost information for last year is as follows: The company allocates overhead costs using conventional costing using direct labor hours. You are concerned that the conventional cost-allocation system the company is using may not be generating accurate information so the resulting sales prices may also be improperly determined. You decide to perform some computations and report your results to your superior, Thomas Taylor. Create a spreadsheet with an output section that: (a) determines the overhead application rate per direct labor hour under conventional costing, (b) determines the total cost to manufacture one unit electronic keyboard using conventional costing (show material, labor and overhead separately to enhance manager usefulness) (c) determines the total cost to manufacture one unit digital piano using conventional costing (show material, labor and overhead separately to enhance manager usefulness) as well as d) the current per-unit gross profit generated by the sale of an electronic keyboard, and e) the current per-unit gross profit generated by the sale of a digital piano Step by Step Solution
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