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Summer Daze Corporation manufactures two products, Bocce Ball Sets and Croquet Sets. Croquet Sets were added as a product line two years ago. Croquet
Summer Daze Corporation manufactures two products, Bocce Ball Sets and Croquet Sets. Croquet Sets were added as a product line two years ago. Croquet Sets are the more complex of the two products, requiring one hour of direct labour time per unit to manufacture, compared to a half hour of direct labour time for Bocce Ball Set. Croquet Sets are produced on an automated production line. Indirect costs are currently allocated to the products based on direct labour hours. The company estimated it would incur $224,000 in manufacturing overhead costs and produce 6,000 units of Croquet Sets and 20,000 units of Bocce Ball Sets during the current year. The company markup rate is 60% of cost. (round to two decimal places) Unit costs for materials and direct labour are: Direct labour Direct materials Bocce Ball Set $9 Croquet Set $18 $12 $16
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