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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 | 4,000 | 2,000 | 6,000 | ||||||
Direct labor-hours | 2,000 | 2,000 | 4,000 | ||||||
Direct materials costs | $ | 11,000 | $ | 4,000 | $ | 15,000 | |||
Direct labor costs | 68,000 | 32,000 | 100,000 | ||||||
Manufacturing overhead costs | 174,000 | ||||||||
Total costs | $ | 289,000 | |||||||
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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