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Sportway inc. produces nigh-guano,r tennis racquets and golf clubs using a patented forming process and highquality hand-finishing. Products move through two production departments; Forming and
Sportway inc. produces nigh-guano,r tennis racquets and golf clubs using a patented forming process and highquality hand-finishing. Products move through two production departments; Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machine-hours in Forming and direct labourcost in Finishing. Information related to costs tor last year is provided below: Tennis Golf Raoquets Clubs Annual production and sales [units] 6.300 10.?00 Direct materials cost per unit $ 5.10 5 4.23 Direct labour cost per unit; Forming Department 95 'r' 5 6.50 Finishing Department 95 5.0% 5 100 Machinehours per unit; Forming Department 0.25 t] .25 Finishing Department Drill] 0.53 in addition. The firm: budgets manufacturing overhead at 552.?53 in me Forming Department and 354.5% in the Finishing UEDEI'II'TIEI'IL Determine the total cost per unit of tennis racquets and golf clubs
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