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Product Profitability Sandford Inc. manufactures lawn mowers and garden tractors. Lawn mowers are relatively simple to produce and are made in large quantities. Garden
Product Profitability Sandford Inc. manufactures lawn mowers and garden tractors. Lawn mowers are relatively simple to produce and are made in large quantities. Garden tractors are customized to individual wholesale customer specifications. The company produces and sells 300,000 lawn mowers and 30,000 garden tractors annually. Revenues and costs incurred for each product are as follows Lawn Mowers Garden Tractors Revenue Direct material $19.500.000 $17.850.000 4.000.000 Direct labor (520 per hour 2,000,000 2.700.000 6.000.000 Overhead 2 Manufacturing overhead totals $3,960,000 Calculate the profit (loss) in total and per unit for each product if overhead is assigned to product using a per-unit basis. Note: Round your final answers to two decimal places (m. round $4.355 to $4.36) Mowers Profit (les) in total $ Profe pass Tractors Total a. Calculate the profit (loss) in total and per unit for each product if overhead is assigned to product using a per-unit basis Note: Round your final answers to two decimal places (e. round $4.355 to $4.36) Mowers Profit (loss) in total Tractors Total Profit (loss) per unit b. Calculate the profit loss) in total and per unit for each product if overhead is assigned to products using a direct labor hour basis. Note: Round your final answers to two decimal places (Le. round $4.355 to $4.36). Profe (os) in total $ Proft dos per unit 5 Mowers Tractors Total c. Assume that manufacturing overhead can be divided into two cost pools as follows: $1,320,000, which has a cost driver of direct labor hours, and $2,640,000, which has a cost driver of machine hours (totaling 150,000). Lawn mower production uses 25,000 machine hours; garden tractor production uses 125.000 machine hours. Calculate the profit loss) in total and per unit for each product if overhead is assigned to products using these two over head bases Note: Hound your final answers to two decimal places te round 14.355 to $4.36) Mowers Profit easy total 5 obt 002) per unit S Tractors Total
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