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 | 1,080 | 330 | 1,410 | ||||||
Machine-hours | 3,500 | 3,500 | 7,000 | ||||||
Direct labor-hours | 3,900 | 3,400 | 7,300 | ||||||
Direct materials costs | $ | 10,000 | $ | 4,050 | $ | 14,050 | |||
Direct labor costs | 63,500 | 56,500 | 120,000 | ||||||
Manufacturing overhead costs | 208,280 | ||||||||
Total costs | $ | 342,330 | |||||||
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 | $ | 1,600 | Machine-hour related |
Supplies | 4,700 | Direct labor cost related | |
Training | 9,400 | Direct labor cost related | |
Supervision | 20,800 | Direct labor cost related | |
Machine depreciation | 30,000 | Machine-hour related | |
Plant depreciation | 24,400 | Machine-hour related | |
Miscellaneous | 117,380 | 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 intermediate calculations. Round your final answers to the nearest whole number.)
Basic Dominator Total
Direct Material
Direct Labor
Overhead
Machine related
Labor related
Total Cost
Units Produced
Unit Cost
Calculate product cost per unit
Basic | Dominator | |
Direct material | 10000 | 4050 |
Direct labor | 63500 | 56500 |
Overhead | ||
Machine related | 8*3500 = 28000 | 28000 |
Labor related | 152280*63500/120000 = 80581.50 | 71698.50 |
Total Cost | 182081.50 | 160248.50 |
Unit produced | 1080 | 330 |
Unit cost | 169 | 486 |
Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator....
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 1,320 320 1,640 Machine-hours 3,700 2,800 6,500 Direct labor-hours 3,100 2,200 5,300 Direct materials costs $ 16,000 $ 4,050 $ 20,050 Direct labor costs 63,500 51,500 115,000 Manufacturing overhead costs 199,085 Total costs $ 334,135 Tiger Furnishings’s CFO believes that a two-stage cost allocation system would give managers better cost information....
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 1,140 410 1,550 Machine-hours 3,500 3,000 6,500 Direct labor-hours 3,400 3,100 6,500 Direct materials costs $ 12,000 $ 4,050 $ 16,050 Direct labor costs 62,000 53,000 115,000 Manufacturing overhead costs 204,205 Total costs $ 335,255 Tiger Furnishings’s CFO believes that a two-stage cost allocation system would give managers better cost information....
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 1,320 400 1,720 Machine-hours 3,000 3,500 6,500 Direct labor-hours 3,500 3,400 6,900 Direct materials costs $ 10,000 $ 4,750 $ 14,750 Direct labor costs 64,500 35,500 100,000 Manufacturing overhead costs 192,600 Total costs $ 307,350 Tiger Furnishings’s CFO believes that a two-stage cost allocation system would give managers better cost information....
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 1,360 260 1,620 Machine-hours 3,700 2,800 6,500 Direct labor-hours 3,100 2,500 5,600 Direct materials costs $ 10,000 $ 4,350 $ 14,350 Direct labor costs 63,500 51,500 115,000 Manufacturing overhead costs 205,355 Total costs $ 334,705 Tiger Furnishings’s CFO believes that a two-stage cost allocation system would give managers better cost information....
Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow: Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs Basic 1,420 3,700 3,400 $11,000 63,000 Dominator 260 2,800 2,800 $ 5,450 57,000 Total 1,680 6,500 6,200 $ 16,450 120,000 203,440 $339,890 Tiger Furnishings's CFO believes that a two-stage cost allocation system would give managers better cost information. She asks...
Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs Basic 1,eee 4,500 3,080 $10, eee 64,500 Dominator 250 2,500 2,000 $ 3,750 35,588 Total 1,250 7,000 5,888 $ 13,750 100,000 175,000 $288,750 Tiger Furnishings's CFO believes that a two-stage cost allocation system would give managers better cost information. She...
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 Units produced 1.360 Machine-hours 3,30 Direct labor-hours 4.600 Direct materials costs $19.00 Direct Labor costs 62. See Manufacturing overhead costs Total costs Dominator Total 3901 .699 2,7806 ,888 4.80 8 .889 $4,450 $23.450 52.See 115. 193.590 $332.ee Tiger Furnishings's CFO believes that a two-stage cost allocation system would give managers better cost information. She asks...
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 900 300 1,200 Machine-hours 4,500 2,100 6,600 Direct labor-hours 3,000 2,300 5,300 Direct materials costs $ 9,700 $ 3,750 $ 13,450 Direct labor costs 56,500 39,600 96,100 Manufacturing overhead costs 184,440 Total costs $ 293,990 Required: Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead...
Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow: BasicDominatorTotalUnits produced1,1403301,470Machine-hours3,4003,6007,000Direct labor-hours2,0002,0004,000Direct materials costs$13,000$4,750$17,750Direct labor costs62,50052,500115,000Manufacturing overhead costs202,970Total costs$335,720 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...
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 950 400 1,350 Machine-hours 3,100 2,700 5,800 Direct labor-hours 3,000 2,000 5,000 Direct materials costs $ 8,400 $ 4,100 $ 12,500 Direct labor costs 55,700 33,800 89,500 Manufacturing overhead costs 164,720 Total costs $ 266,720 Required: Compute the predetermined overhead rate assuming that Tiger Furnishings uses machine-hours to allocate overhead costs....