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The Beach Towel Company makes 2 products (Red & Blue towels) and currently uses only one POR based on direct labor hours. Data is as
The Beach Towel Company makes 2 products (Red & Blue towels) and currently uses only one POR based on direct labor hours. Data is as follows: 5 Three Requirements B 9 0 1 2 23 24 25 26 27 28 29 30 31 32 33 34 35 36 DM per unit DL per unit (a) DL hours per unit (b) Number of units produced Total Estimated DL Hours for period (a*b) 1 POR using Estimated DL Hours TO DO-replace the Question marks below with the correct answer Unit product cost DM DL Red Towels Blue Towels $ 10.00 $ $ 3.00 $ 0.2 1. The company's manufacturing overhead costs are estimated to be $350,000. They use direct labor hours as the activity/cost driver. This assignment asks you to calculate the cost per unit. Here's step by step instructions: a. First calculate the POR (est OH + est cost driver) 350,000 Cost per unit using one POR Red Towels 10 3 15,000 3,000 b. Second calculate the applied OH, by multiplying the POR time the actual DLH per unit used to make the product c. Add together the DM + DL + OH (applied OH) Applied Overhead: Red Towels's OH Blue Towels's OH Total Unit Product Cost 71 ? Cull ? 12.00 3.75 0.25 Call ? TOTAL 40,000 10,000 13000 DLH/year Blue Towels 12 3.75
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