Problem: Manufacturing Overhead-multiple application bases. Staley Toy Co. makes toy flutes. Two manufacturing overhead application bases are used; some overhead is applied on the basis of machine hours at a rate of $7.20 per machine hour, and the balance of the overhead is applied at the rate of 250% of direct labor cost.
Required to do:
a) Calculate the cost per unit of a production run of 1,420 toy flutes that required:
1. Raw materials costing $960.
2. 36 direct labor hours costing $612.
3. 60 machine hours.
b) At the end of September, 1,310 of these toy flutes had been sold. Calculate the ending inventory value of the toy flutes still in inventory at September 30.