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Question - 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 $7.50 per machine hour, and the balance of the overhead is applied at the rate of 200% of direct labor cost.
Required:
a. Calculate the cost per unit of a production run of 4,260 toy flutes that required
1. Raw materials costing $2,880.
2. 108 direct labor hours costing $1,836.
3. 180 machine hours.
b. At the end of February, 3,930 of these toy flutes had been sold. Calculate ending inventory value of the toy flutes still in inventory at February 28.
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