Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $35 is used in direct labor, while the direct material for the double is $35 per unit, and the labor cost is $45 per unit. Box Springs estimates it will make 5,000 twins and 10,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: Activity Cost Pools Driver Estimated Overhead Use per Twin Use per Double Framing Square Feet of Pine $210,000 5,000 2,000 Padding Square Feet of Quilting 230,000 130,000 100,000 Filling Square Feet of Filling 300,000 450,000 300,000 Labeling Number of Boxes 230,000 800,000 350,000 Inspection Number of Inspections 135,000 11,000 4,000 How much does each unit cost to manufacture? Do not round intermediate computations but round final answers for the fields below to the nearest whole number. Total Cost per Unit Twin Double Direct Material $ $ Direct Labor Cost Overhead Total per Unit $ $
Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $35 is used in direct labor, while the direct material for the double is $35 per unit, and the labor cost is $45 per unit. Box Springs estimates it will make 5,000 twins and 10,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: Activity Cost Pools Driver Estimated Overhead Use per Twin Use per Double Framing Square Feet of Pine $210,000 5,000 2,000 Padding Square Feet of Quilting 230,000 130,000 100,000 Filling Square Feet of Filling 300,000 450,000 300,000 Labeling Number of Boxes 230,000 800,000 350,000 Inspection Number of Inspections 135,000 11,000 4,000 How much does each unit cost to manufacture? Do not round intermediate computations but round final answers for the fields below to the nearest whole number. Total Cost per Unit Twin Double Direct Material $ $ Direct Labor Cost Overhead Total per Unit $ $
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...
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Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $35 is used in direct labor, while the direct material for the double is $35 per unit, and the labor cost is $45 per unit. Box Springs estimates it will make 5,000 twins and 10,000 doubles in the next year. It estimates the
| Activity Cost Pools |
Driver | Estimated Overhead |
Use per Twin |
Use per Double |
| Framing | Square Feet of Pine | $210,000 | 5,000 | 2,000 |
| Padding | Square Feet of Quilting | 230,000 | 130,000 | 100,000 |
| Filling | Square Feet of Filling | 300,000 | 450,000 | 300,000 |
| Labeling | Number of Boxes | 230,000 | 800,000 | 350,000 |
| Inspection | Number of Inspections | 135,000 | 11,000 | 4,000 |
How much does each unit cost to manufacture? Do not round intermediate computations but round final answers for the fields below to the nearest whole number.
| Total Cost per Unit | Twin | Double |
| Direct Material | $ | $ |
| Direct Labor Cost | ||
| Overhead | ||
| Total per Unit | $ | $ |
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