Tiger furnishings produces two models of cabinets for home


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 1,000 250 1,250 Machine-hours 4,500 2,500 7,000 Direct labor-hours 3,000 2,000 5,000 Direct materials costs $ 10,000 $ 3,750 $ 13,750 Direct labor costs 64,500 35,500 100,000 Manufacturing overhead costs 175,000 Total costs $ 288,750 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 $ 1,800 Machine-hour related Supplies 5,000 Direct labor cost related Training 10,600 Direct labor cost related Supervision 25,800 Direct labor cost related Machine depreciation 32,100 Machine-hour related Plant depreciation 14,400 Machine-hour related Miscellaneous 85,300 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 intermediate calculations.)

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Financial Accounting: Tiger furnishings produces two models of cabinets for home
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