Question

Arty Overhead w Double 150.00 210.000 120.000 0.000 20.000 450.000 250.000 2.000.000.000 1. 2000 Square feet of umber of pections Total cost per

Box springs makes two sizes of box springs twin and double. The direct material for the twin is $30 per unit and $45 is used for direct labor while the direct material for the double is $45 per unit and the direct labor cost is $45 per unit.

Box Springs Estimates it will make 5000 twins and 10,000 doubles in the next year. it estimates the overhead for each cost for and cause a driver activities as follows.

Answer 1

Caluclation of Overhead per Unit
A	B	C	D	E	F = D+E	G = F/C	H = D*G	I = E*g
Activity Cost Pools	Driver	Estimated Overhead	Use per Twin	Use per Double	Total Use	Overhead Per use	Overhead Allocation to twin	Overhead allocation to Double
framing	Sq Ft of pine	150000	5000	1000	6000	25	125000	25000
Padding	Sq Ft of quilting	210000	120000	90000	210000	1	120000	90000
Filling	Sq Ft of filling	280000	450000	250000	700000	0.4	180000	100000
LABELING	No. of Boxes	230000	800000	350000	1150000	0.2	160000	70000
Inspection	No. of Inspections	180000	12000	6000	18000	10	120000	60000
Total		1050000					705000	345000
	Twin	Double
Total Overhead allocated	705000	345000
No. of Units	5000	10000
Per Unit	141	34.5
Caluclation of Total Cost per Unit
	Twin	Double
Direct MATERIAL	30	45
Direct labor	45	45
Overhead	141	34.5
Total per unit	216	124.5