Required information [The following information applies to the questions displayed below.] Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs Required A Required B KA-15 Required C Product costs per unit 600 360 750 $ 82,000 16,500 Required: a. Compute the individual product costs per unit assuming that Kilbourne Appliances uses the number of units to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct labor cost. c. Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct material costs to allocate overhead to the products. KA-24 400 540 1,750 $ 130,000 38,500 KA-15 KA-24 $ 222,520.00 $ 251,180.00 Total 1,000 900 2,500 $ 212,000 55,000 206,700 $ 473,700 Compute the individual product costs per unit assuming that Kilbourne Appliances uses the number of units to allocate overhead to the products. Note: Do not round your intermediate calculations. Round your final answers to 2 decimal places.
Required information [The following information applies to the questions displayed below.] Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs Required A Required B KA-15 Required C Product costs per unit 600 360 750 $ 82,000 16,500 Required: a. Compute the individual product costs per unit assuming that Kilbourne Appliances uses the number of units to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct labor cost. c. Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct material costs to allocate overhead to the products. KA-24 400 540 1,750 $ 130,000 38,500 KA-15 KA-24 $ 222,520.00 $ 251,180.00 Total 1,000 900 2,500 $ 212,000 55,000 206,700 $ 473,700 Compute the individual product costs per unit assuming that Kilbourne Appliances uses the number of units to allocate overhead to the products. Note: Do not round your intermediate calculations. Round your final answers to 2 decimal places.
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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![Required information
[The following information applies to the questions displayed below.]
Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on
operations and costs for March follow.
Units produced
Machine-hours
Direct labor-hours
Direct materials costs
Direct labor costs
Manufacturing overhead costs
Total costs
Required A Required B
KA-15
Required C
Product costs per unit
600
360
750
$ 82,000
16,500
Required:
a. Compute the individual product costs per unit assuming that Kilbourne Appliances uses the number of units to allocate overhead to
the products.
b. Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct labor cost.
c. Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct material costs to allocate overhead
to the products.
KA-24
400
540
1,750
$ 130,000
38,500
KA-15
KA-24
$ 222,520.00 $ 251,180.00
Total
1,000
900
2,500
$ 212,000
55,000
206,700
$ 473,700
Compute the individual product costs per unit assuming that Kilbourne Appliances uses the number of units to allocate
overhead to the products.
Note: Do not round your intermediate calculations. Round your final answers to 2 decimal places.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ad5c3b3-0e2c-4016-9024-adf9ec248309%2F8c0a5281-1c16-443e-8b78-54add83de4ef%2Fsctrrf_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on
operations and costs for March follow.
Units produced
Machine-hours
Direct labor-hours
Direct materials costs
Direct labor costs
Manufacturing overhead costs
Total costs
Required A Required B
KA-15
Required C
Product costs per unit
600
360
750
$ 82,000
16,500
Required:
a. Compute the individual product costs per unit assuming that Kilbourne Appliances uses the number of units to allocate overhead to
the products.
b. Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct labor cost.
c. Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct material costs to allocate overhead
to the products.
KA-24
400
540
1,750
$ 130,000
38,500
KA-15
KA-24
$ 222,520.00 $ 251,180.00
Total
1,000
900
2,500
$ 212,000
55,000
206,700
$ 473,700
Compute the individual product costs per unit assuming that Kilbourne Appliances uses the number of units to allocate
overhead to the products.
Note: Do not round your intermediate calculations. Round your final answers to 2 decimal places.
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