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 1,250 300 1,550 Machine-hours 4,000 1,000 5,000 Direct labor-hours 2,000 3,000 5,000 Direct materials costs $ 10,000 $ 3,500 $ 13,500 Direct labor costs 60,000 33,000 93,000 Manufacturing overhead costs 164,796 Total costs $ 271,296 Required: Compute the individual product costs per unit assuming that Tiger Furnishings uses machine-hours to allocate overhead to the products. Basic (unit cost)? dominator (unit cost)?
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