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What is the cost per unit for a Queen? What is the cost per unit for a King? PB6. LO 6.3 Box Springs, Inc., makes
What is the cost per unit for a Queen?
What is the cost per unit for a King?
PB6. LO 6.3 Box Springs, Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: Activity Cost Pools Use per Estimated Overhead Use per King Framing Padding Filling Labeling Inspection Driver Square feet of pine Square feet of quilting Square feet of filling Number of boxes Number of inspections $150,000 156,000 210,000 190,000 180,000 Queen 4,500 80,000 150,000 38,000 120,000 3,000 40,000 60,000 38,000 60,000Step by Step Solution
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