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Real Cool produces air conditioners Department Assembly Finishing in two departments: Assembly and Finishing. Budgeted information follows. Allocation Base Machine hours Direct labor hours Budgeted
Real Cool produces air conditioners Department Assembly Finishing in two departments: Assembly and Finishing. Budgeted information follows." Allocation Base Machine hours Direct labor hours Budgeted Usage 7,700 machine hours 4,800 direct labor hours Additional production information for two models of its air conditioners follows. Per unit Selling price Direct materials Direct labor Budgeted Cost $ 308,000 24,000 Units produced Assembly machine hours per unit Finishing direct labor hours per unit Req 1A Model A $570 185 235 Department Req 1B Model T $ 540 175 245 1a. Compute departmental overhead rates and determine overhead cost per unit for each model. 1b. Use machine hours to allocate budgeted Assembly costs and use direct labor hours to allocate budgeted Finishing costs. 2. Compute the total product cost per unit for each model. 3. For each model, compute the gross profit per unit (selling price per unit minus product cost per unit). Complete this question by entering your answers in the tabs below. Req 2 Departmental Overhead Rate Req 3 Model A 500 2 MH 3 DLH Use machine hours to allocate budgeted Assembly costs and use direct labor hours to allocate budgeted Finishing costs. Note: Round "Hours per unit" to one decimal place. Model A Hours per Unit Model T 600 3 MH 4 DLH Overhead Allocated Model T Hours per Unit Overhead Allocated
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