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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
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. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead Total costs Required A Standard 24,000 14,400 18,000 $ 480,000 288,000 Required B 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. Product costs per unit Enhanced 8,000 9,600 18,000 $ 720,000 612,000 c. Compute the individual product costs per unit assuming that Redfern Audio uses machine hours to allocate overhead to the products. Required C Total Standard 32,000 24,000 36,000 $ 1,200,000 900,000 864,000 $ 2,964,000 Enhanced Compute the individual product costs per unit assuming that Redfern Audio uses machine hours to allocate overhead to the products. Note: Round your final answers to 2 decimal places.
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