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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 1,040 340 1,380
Machine-hours 3,300 2,700 6,000
Direct labor-hours 3,500 2,800 6,300
Direct materials costs $ 15,000 $ 5,550 $ 20,550
Direct labor costs 64,500 35,500 100,000
Manufacturing overhead costs 181,000
Total costs $ 301,550

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 $ 1,500 Machine-hour related
Supplies 4,600 Direct labor cost related
Training 9,200 Direct labor cost related
Supervision 23,800 Direct labor cost related
Machine depreciation 28,000 Machine-hour related
Plant depreciation 24,500 Machine-hour related
Miscellaneous 89,400 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.)

Basic Dominator Total
Product costing
Direct Material
Direct Labor
Overhead
Machine-related
Labor related
Total Overhead
Total cost
Units produced
Unit cost

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