Tiger furnishings produces two models of cabinets for home

Reference no: EM13588508

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		1,420		440		1,860
Machine-hours		3,300		2,700		6,000
Direct labor-hours		2,900		3,300		6,200

Direct materials costs	$	16,000	$	5,450	$	21,450
Direct labor costs		63,500		51,500		115,000
Manufacturing overhead costs						194,510

Total costs					$	330,960

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	$	1,500	Machine-hour related
Supplies		4,600	Direct labor cost related
Training		9,200	Direct labor cost related
Supervision		25,800	Direct labor cost related
Machine depreciation		23,000	Machine-hour related
Plant depreciation		23,500	Machine-hour related
Miscellaneous		106,910	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 the direct-labor cost rate in your intermediate calculations. Round your answers to two decimal places.)

Reference no: EM13588508

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