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 | 1,260 | 400 | 1,660 | ||||||
Machine-hours | 3,200 | 3,300 | 6,500 | ||||||
Direct labor-hours | 3,400 | 2,900 | 6,300 | ||||||
Direct materials costs | $ | 17,000 | $ | 5,250 | $ | 22,250 | |||
Direct labor costs | 62,500 | 57,500 | 120,000 | ||||||
Manufacturing overhead costs | 218,720 | ||||||||
Total costs | $ | 360,970 | |||||||
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 | $ | 1,600 | Machine-hour related |
Supplies | 4,700 | Direct labor cost related | |
Training | 9,400 | Direct labor cost related | |
Supervision | 21,800 | Direct labor cost related | |
Machine depreciation | 22,000 | Machine-hour related | |
Plant depreciation | 41,400 | Machine-hour related | |
Miscellaneous | 117,820 | 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.)
Answer is not complete.
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