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Marine, Inc., manufactures a product that is availsbie in both a fexble and a rigid...

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Accounting

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Marine, Inc., manufactures a product that is availsbie in both a fexble and a rigid model. The company hes made the rigid model for years the texible model Since introduction of the fexible model, the compamy's profts have steadly decined, and management has become concemed about the accuracy of its cosing system. Sales of the flexible model have been increasing rapidy. was introduced several years ago to tap a new segment of the market Overhead appied to products on the basis of died labor-hours. At the beginning of the current year, management estmated that $480,000 in owerhead costs would be incurred and the company would produce and sell 1,000 units of the fexible model and 14,000 unts of the rigid model. The nexible model requires 2.0 hourta) of direct labor time per unit, and the rigid model requires 1.00 hours) Direct materials and labor costs per unt are given below Direct materials cost per unit Direct labor cost per unit Flaxble Rigid $ 140 $ 85 35 $ 20 Required: 1-s. Compute the predetermined overhead rate using diroct labor-hours as he basis for alocaing overhead sts to products. per DLH 1-b. Compute the unt product cost for one unit of each model Rigid

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