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Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the

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Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Standard Units produced Machine-hours Direct labor-hours 24,000 Enhanced 8,000 14,400 18,000 Direct materials costs Direct labor costs $ 480,000 288,000 9,600 18,000 $ 720,000 Total 32,000 24,000 36,000 612,000 Manufacturing overhead Total costs $ 1,200,000 900,000 864,000 $ 2,964,000 Required: a. Compute the individual product costs per unit assuming that Redfern Audio uses the number of units to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor hours to allocate overhead to the products. c. Compute the individual product costs per unit assuming that Redfern Audio uses machine hours to allocate overhead to the products. Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Standard Units produced Machine-hours Direct labor-hours 24,000 Enhanced 8,000 14,400 18,000 Direct materials costs Direct labor costs $ 480,000 288,000 9,600 18,000 $ 720,000 Total 32,000 24,000 36,000 612,000 Manufacturing overhead Total costs $ 1,200,000 900,000 864,000 $ 2,964,000 Required: a. Compute the individual product costs per unit assuming that Redfern Audio uses the number of units to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor hours to allocate overhead to the products. c. Compute the individual product costs per unit assuming that Redfern Audio uses machine hours to allocate overhead to the products.

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