Question
The Bamboo Company produces two products, blinds and drapes. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are
The Bamboo Company produces two products, blinds and drapes. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below.
Product | Number of Units | Labor Hours Per Unit | Machine Hours Per Unit |
Blinds | 1,000 | 4 | 5 |
Drapes | 2,000 | 2 | 8 |
All of the machine hours take place in the Fabrication department, which has an estimated overhead of $84,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $72,000.
The Bamboo Company uses a single overhead rate to apply all overhead costs based on labor hours. What is the overhead cost per unit for blinds?
Enter your answer with dollars and cents. Make sure you put in a dollar sign. (Example $1.50)
In order to earn credit for your answers to the problems, you are required to show all supporting work.
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