Tiger Furnishingsproduces two models of cabinets for home theater components, theBasic and the Dominator. Data on operations and costs for Marchfollow:
| Basic | Dominator | Total |
Units produced | | 1,300 | | | 380 | | | 1,680 | |
Machine-hours | | 3,300 | | | 2,700 | | | 6,000 | |
Directlabor-hours | | 3,400 | | | 3,700 | | | 7,100 | |
Direct materialscosts | $ | 19,000 | | $ | 4,150 | | $ | 23,150 | |
Direct laborcosts | | 62,500 | | | 52,500 | | | 115,000 | |
Manufacturingoverhead costs | | | | | | | | 201,200 | |
Total costs | | | | | | | $ | 339,350 | |
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Tiger Furnishings’s CFO believes that a two-stage cost allocationsystem would give managers better cost information. She asks thecompany’s cost accountant to analyze the accounts and assignoverhead costs to two pools: overhead related to direct labor costand overhead related to machine-hours.
The analysis ofoverhead accounts by the cost accountant follows:
ManufacturingOverhead | Overhead Estimate | Cost PoolAssignment |
Utilities | $ | 1,600 | Machine-hour related |
Supplies | | 4,600 | Direct laborcost related |
Training | | 9,200 | Direct laborcost related |
Supervision | | 21,800 | Direct laborcost related |
Machinedepreciation | | 30,000 | Machine-hourrelated |
Plantdepreciation | | 22,400 | Machine-hourrelated |
Miscellaneous | | 111,600 | Direct laborcost related |
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Required:
b.Compute the product costs per unit assuming that Tiger Furnishingsuses direct labor costs and machine-hours to allocate overhead tothe products. (Do not round intermediatecalculations.)
BASICDOMINATOR TOTAL
PRODUCTCOSTING
DIRECT MATERIAL ? ? ?
DIRECT LABOR ? ? ?
OVERHEAD
MACHINE-RELATED ? ? ?
LABOR-RELATED ? ? ?
TOTAL-OVERHEAD ? ? ?
TOTAL COST ? ? ?
UNITS PRODUCED ? ?
UNIT COST ? ?
ALL THE ONESWITH QUESTIONS MARKS REQUIRED ANSWERS THANK YOU