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Compute the product costs per unit assuming that Tiger Furnishings uses direct labor costs

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Problem 6-47 Account Analysis, Two-Stage Allocation, and Product Costing (LO 6-2, 4, 5);Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow;Basic Dominator Total;Units produced 1,100 380 1,480;Machine-hours 3,800 3,200 7,000;Direct labor-hours 3,800 3,800 7,600;Direct materials costs $ 13,000 $ 5,650 $ 18,650;Direct labor costs 62,500 37,500 100,000;Manufacturing overhead costs 190,600;Total costs $ 309,250;Tiger Furnishings?s CFO believes that a two-stage cost allocation system would give managers better cost information. She asks the company?s cost accountant to analyze the accounts and assign overhead costs to two pools: overhead related to direct labor cost and overhead related to machine-hours.;The analysis of overhead accounts by the cost accountant follows;Manufacturing Overhead Overhead;Estimate Cost Pool Assignment;Utilities $ 1,500 Machine-hour related;Supplies 4,400 Direct labor cost related;Training 8,800 Direct labor cost related;Supervision 22,800 Direct labor cost related;Machine depreciation 30,000 Machine-hour related;Plant depreciation 31,500 Machine-hour related;Miscellaneous 91,600 Direct labor cost related;Required;(b);Compute the product costs per unit assuming that Tiger Furnishings uses direct labor costs and machine-hours to allocate overhead to the products. (Do not round the direct-labor cost rate in your intermediate calculations. Round your answers to two decimal places.)

 

Paper#24117 | Written in 18-Jul-2015

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