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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 | 250 | 1,250 | ||||||
Machine-hours | 4,500 | 2,500 | 7,000 | ||||||
Direct labor-hours | 3,000 | 2,000 | 5,000 | ||||||
Direct materials costs | $ | 10,000 | $ | 3,750 | $ | 13,750 | |||
Direct labor costs | 64,500 | 35,500 | 100,000 | ||||||
Manufacturing overhead costs | 175,000 | ||||||||
Total costs | $ | 288,750 | |||||||
Required:
Compute the individual product costs per unit assuming that Tiger Furnishings uses machine-hours to allocate overhead to the products.
Basic and Dominator unit cost?
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