The Company P produces doors and windows. The company produces 4 windows per door. In...

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Accounting

The Company P produces doors and windows. The company produces 4 windows per door. In each window the company uses half an hour of direct labor and for each door uses one hour. The prime costs of making doors are $ 20 and $ 16 for the windows. Labor represents 60% of the prime costs. The indirect costs estimated for this production total $ 330,000. The company distributes indirect costs through the use of machine hours. The labor cost used in the production of the windows is $ 240,000. A door requires 2 hours of machinery and sales need one hour.Required determine the cost per unit and total of doors and windows under premise a and answer the required b:a. The company distributes the indirect costs using machine hoursb. If the actual indirect costs are $ 210,000 determine the effect of this on the cost per unit of each product

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4.2 Ratings (583 Votes)

Hi I have answered both parts of the question along with the requisite calculations In the question it is mentioned A door requires 2 hours of machinery and sales need one hour I am assuming window require one hour as the hours for windows are not referenced anywhere and sales does not require machine hours Answer Summary Doors See Answer

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