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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		1,500			250			1,750
Machine-hours		3,000			1,000			4,000
Direct labor-hours		3,000			1,000			4,000
Direct materials costs	$	11,000		$	3,750		$	14,750
Direct labor costs		68,000			34,000			102,000
Manufacturing overhead costs								181,050
Total costs							$	297,800

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 your final answers to 2 decimal places.)

Answer 1

H 4 Сл A B с E F G 1 Allocation of manufacturing overhead costs to the products on the basis of machine hours 2 Total manufacturing overhead costs $181,050 3 Basic Dominator Total 5 Machine-hours 3,000 1,000 4,000 6 Allocation of manufacturing overhead costs $135,787.50 $45,262.50 $181,050.00 7 Computation of individual product costs per unit 9 Basic Dominator 10 Direct material costs $11,000 $3,750 11 Direct labor costs 68,000 34,000 12 Manufacturing overhead costs 135,787.50 45,262.50 13 Total costs $214,787.50 $83,012.50 Units produced 1,500 250 15 Product costs per unit $143.19 $332.05 16 8 14

E F G B 1 Allocation of manufacturing overhead costs to the products on the basis of machine hours Total manufacturing overhead costs 181050 2 3 4 Total Basic 3000 =(E5/G5)*E2 Dominator 1000 =(F5/65)*E2 4000 =E6+F6 5 Machine-hours 6 Allocation of manufacturing overhead costs 7 8 Computation of individual product costs per unit 9 Basic 10 Direct material costs 11000 11 Direct labor costs 68000 12 Manufacturing overhead costs 135787.5 13 Total costs =D10+D11+D12 14 Units produced 1500 15 Product costs per unit =D13/D14 16 Dominator 3750 34000 45262.5 =E10+E11+12 250 =E13/E14