Question
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 1,080 360 1,440 Machine-hours 3,000 3,500 6,500 Direct labor-hours 3,100 3,400 6,500 Direct materials costs $ 17,000 $ 4,850 $ 21,850 Direct labor costs 64,500 50,500 115,000 Manufacturing overhead costs 197,590 Total costs $ 334,440 Tiger Furnishingss CFO believes that a two-stage cost allocation system would give managers better cost information. She asks the companys cost accountant to analyze the accounts and assign overhead costs to two pools: overhead related to direct labor cost and overhead related to machine-hours. The analysis of overhead accounts by the cost accountant follows: Manufacturing Overhead Overhead Estimate Cost Pool Assignment Utilities $ 1,600 Machine-hour related Supplies 4,700 Direct labor cost related Training 9,400 Direct labor cost related Supervision 23,800 Direct labor cost related Machine depreciation 30,000 Machine-hour related Plant depreciation 20,400 Machine-hour related Miscellaneous 107,690 Direct labor cost related Required: (b) Compute the product costs per unit assuming that Tiger Furnishings uses direct labor costs and machine-hours to allocate overhead to the products. (Do not round the direct-labor cost rate in your intermediate calculations. Round your answers to two decimal places.) basic (unit cost)? dominator (unit cost)
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