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Tyler Inc. Tyler Inc. manufactures ultra comfortable mattresses. Its top-selling mattresses are the queen-size Plush Foam and Ortho Cooling Gel mattresses. Plush Foam Ortho Cooling
Tyler Inc. Tyler Inc. manufactures ultra comfortable mattresses. Its top-selling mattresses are the queen-size Plush Foam and Ortho Cooling Gel mattresses. Plush Foam Ortho Cooling Gel [13 Production Units 100,000 120,000 03 Unit Cost $218 $256 9:! Estimates [14 Production Units 110,000 140,000 Overhead Costs $4,800,000 Total Production Hours 480,000 200,000 280,000 Overhead Costs (per hour} 510 $10 510 Direct Materials Cost (per unit} 5138 5174 Direct Labor Hours (per unit) 2.40 2.88 Direct Labor Cost (per hour) 517 51? Machine Setup Cost (per hour} 523 S25 Machine Setup hours 50,000 75,000 Engineering Cost (per hour) $38 $38 Engineering hours 30,000 36,000 Quality Control (per inspection} 5250 $250 Inspections 5,000 8,500 a. Using the output/input approach and overhead cost per hour, calculate Tyler's budgeted cost per unit to produce Plush Foam and Ortho Coiling Gel mattresses in the 4th Quarter {Q4} b. Using an activity-based approach, calculate Tyler's budgeted cost per unit in Q4
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