Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standa and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant the third quarter follow. Units produced Machine-hours Direct labor-hours Direct materials costs. Direct labor costs Manufacturing overhead Total costs Required A Required B Enhanced 8,000 111 9,600 18,000 $530,400 $ 795,600 675,000 Product costs per unit Standard 24,000 Standard 14,400 18,000 330,000 Required: a. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Total Enhanced 32,000 24,000 36,000 $ 1,326,000 1,005,000 964,800 $ 3,295,800 < Required A Required B >
Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standa and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant the third quarter follow. Units produced Machine-hours Direct labor-hours Direct materials costs. Direct labor costs Manufacturing overhead Total costs Required A Required B Enhanced 8,000 111 9,600 18,000 $530,400 $ 795,600 675,000 Product costs per unit Standard 24,000 Standard 14,400 18,000 330,000 Required: a. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Total Enhanced 32,000 24,000 36,000 $ 1,326,000 1,005,000 964,800 $ 3,295,800 < Required A Required B >
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 31P: Fisico Company produces exercise bikes. One of its plants produces two versions: a standard model...
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