Question

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		1,000			250			1,250
Machine-hours		5,000			3,000			8,000
Direct labor-hours		3,000			1,000			4,000
Direct materials costs	$	11,000		$	4,250		$	15,250
Direct labor costs		68,000			35,000			103,000
Manufacturing overhead costs								182,825
Total costs							$	301,075

Required:

Compute the individual product costs per unit assuming that Tiger Furnishings uses machine-hours to allocate overhead to the products. (Do not round intermediate calculations. Round final answers to 2 decimal places.)

Answer 1

• Requirement

	Basic	Dominator
Direct Materials cost	$11,000	$4,250
Direct Labor cost	$68,000	$35,000
Manufacturing Overhead	$114,266	$68,559
Total Product cost	$193,266	$107,809
Unit produced	1,000	250
Unit Cost	$                     193.27	$                                  431.24

14. Calculation

	Basic	Dominator
Direct Materials cost	11000	4250
Direct Labor cost	68000	35000
Manufacturing Overhead	=+(182825/8000)*5000	=+(182825/8000)*3000
Total Product cost	$193,266	$107,809
Unit produced	1000	250
Unit Cost	$ 193266 / 1000	$ 107809 / 250