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Calculate the total manufacturing costs per unit

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Reference no: EM131755658

Please input the numbers for the problem on this sheet and include all detailed calculations on the next sheet.If the number is wrong and you do not include detail calculations, no partial credit will be given. Costume Kings has two product lines: machine-made costumes and hand-made costumes. The company assigns $80,000 in manufacturing overhead costs to two cost pools: power costs and inspection costs. Of this amount, the power cost pool has been assigned $32,000 and the inspection cost pool has been assigned $48,000. Additional information about each product line is shown below.

A. Allocate the total OH for each cost pool to each product line. The activity base is machine hours for power cost pool. The activity base is inspection hours for Inspection cost pool. Machine Made MOH: Hand Made MOH: Power costs 30,720 1,280 Inspections costs 28,800 19,200

B. Calculate the total manufacturing costs per unit for Machine Made costumes and Hand Made costumes. Machine Made per unit: 4 Hand Made per unit: 7

C. Show the profit per line to determine which line is more profitable. Machine Made profit per unit: Hand Made profit per unit:

Reference no: EM131755658

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