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Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow: Basic
Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow:
Basic | Dominator | Total | |||||||
Units produced | 1,000 | 200 | 1,200 | ||||||
Machine-hours | 5,000 | 2,000 | 7,000 | ||||||
Direct labor-hours | 2,000 | 1,000 | 3,000 | ||||||
Direct materials costs | $ | 10,000 | $ | 3,500 | $ | 13,500 | |||
Direct labor costs | 74,000 | 36,000 | 110,000 | ||||||
Manufacturing overhead costs | 195,250 | ||||||||
Total costs | $ | 318,750 | |||||||
Required:
Compute the individual product costs per unit assuming that Tiger Furnishings uses machine-hours to allocate overhead to the products. (Do not round intermediate calculations. Round final answers to 2 decimal places.)
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