Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow: 1.42

image text in transcribed
image text in transcribed
Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow: 1.42 points Basie 1,240 3,100 3,700 $15,000 65,000 Units produced Machine-hours Direct labor-hours Direct materials coats Direct labor coats Manufacturing overhead coats Total coats Dominator 340 2,900 2,800 $ 5,650 50,000 eBook Total 1,580 6,000 6,500 $ 20,650 115,000 200,855 $336,505 Print References 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: Overhead Manufacturing Overhead Estimate Coat Pool Assignment Utilities $1,500 Machine-hour related Supplies 4,700 Direct labor cost related Training 9,400 Direct labor cost related Supervision 20,800 Direct labor coat related Machine depreciation 25,000 Machine-hour related Plant depreciation 27,500 Machine-hour related Miscellaneous 111,955 Direct labor cost related points eBook 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.) Print References Basic Dominator Total 5.650 15,000 65,000 20,650 115,000 50,000 113,527 Product Costing Direct material Direct labor Overhead Machine-related Labor-related Total overhead Total cost Units produced Unit cost $ $ 113,527 $ 193,527 $ 1,240 0 $ 55,650 $ 135,650 340

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Carl S. Warren, James M. Reeve, Philip E. Fess

20th Edition

0324025424, 978-0324025422

More Books

Students also viewed these Accounting questions

Question

How can sensitivity to pain be altered?

Answered: 1 week ago

Question

Are your goals SMART?

Answered: 1 week ago