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: Don T 1 450 1 250 Units produced Machine-hours Direct labor-hours 4,000 4.000 2.000 2,000 S 3,75 38,000 6.000 6.000 Direct materials costs 11,/50 Manufacturing overhead costs 166.012 $275,762 Total costs Required: Compute the ind ivid ual product costs per unit assuming that Tiger Funishings uses machine-hours to allocate overhead to the products. (Do not round intermediate calculations. Round final decimal places.) answers to Unit Cost Basic Dominator

Answer 1

Solution:

Overhead allocated to Basic = $166012 *4000 / 6000 = $110,674.67

Overhead allocated to Dominator = $166012 *2000 / 6000 = $55,337.33

Computation of Unit Cost
	Basic	Dominator
Direct Materials Costs	$8,000.00	$3,750.00
Direct labor costs	$60,000.00	$38,000.00
Overhead Cost Allocated	$1,10,674.67	$55,337.33
Total Cost	$1,78,674.67	$97,087.33
Units	1250	200
Unit Cost	$142.94	$485.44