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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
1,420

440

1,860
  Machine-hours
3,300

2,700

6,000
  Direct labor-hours
2,900

3,300

6,200









  Direct materials costs $ 16,000
$ 5,450
$ 21,450
  Direct labor costs
63,500

51,500

115,000
  Manufacturing overhead costs






194,510









       Total costs





$ 330,960










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 $ 1,500   Machine-hour related
  Supplies
4,600   Direct labor cost related
  Training
9,200   Direct labor cost related
  Supervision
25,800   Direct labor cost related
  Machine depreciation
23,000   Machine-hour related
  Plant depreciation
23,500   Machine-hour related
  Miscellaneous
106,910   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 the direct-labor cost rate in your intermediate calculations. Round your answers to two decimal places.)

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9966085

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