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		1,020			350			1,370
Machine-hours		3,100			3,900			7,000
Direct labor-hours		2,300			3,600			5,900
Direct materials costs	$	15,000		$	4,550		$	19,550
Direct labor costs		64,000			36,000			100,000
Manufacturing overhead costs								190,700
Total costs							$	310,250

 Tiger Furnishings's CFO believes that a two-stage cost allocation system would give managers better cost information. She asks the company's 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	OverheadEstimate		Cost Pool Assignment
Utilities	$	1,600	Machine-hour related
Supplies		5,000	Direct labor cost related
Training		10,000	Direct labor cost related
Supervision		23,800	Direct labor cost related
Machine depreciation		29,000	Machine-hour related
Plant depreciation		32,400	Machine-hour related
Miscellaneous		88,900	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 intermediate calculations. Round your final answers to the nearest whole number.)

Pre-built Assignment Saved to the products (Do not round intermediate calculations. Round your final answers to the nea st whole number.) Dominator Total Product Costing Direct material Direct labor Overhead Machine-related Laborrelated Total overhead Total cost Uniis produced Unit.cost Prey Next > - ch5jog