Question

Please help with the following

Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow: Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs Basic 1,340 3,700 2,400 $19,000 62,500 Dominator 490 2,300 4,000 $5,350 47,500 Total 1,830 6,000 6,400 $ 24,350 110,000 194,470 $328,820 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 Utilities Supplies Training Supervision Machine depreciation Plant depreciation Miscellaneous Overhead Estimate $ 1,600 4,100 8,200 23,800 23,000 29,400 104,370 Cost Pool Assignment Machine-hour related Direct labor cost related Direct labor cost related Direct labor cost related Machine-hour related Machine-hour related 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. Round your final answers to the nearest whole number.) Basic Dominator Total 19,000 62,500 5,350 47,500 24,350 110,000 Product Costing Direct material Direct labor Overhead Machine-related Labor-related Total overhead Total cost Units produced Unit cost 01 0 52,850 $ S $ 81,500 $ 134,350

Answer 1

	Basic	Dominator	Total
Product Costing
Direct material	19,000	5,350	24,350
Direct labor	62,500	47,500	110,000
Overhead
Machine related	33,300	20,700	54,000
Labor related	52,676	87,794	140,470
Total overhead	85,976	108,494	194,470
Total cost	167,476	161,344	328,820
Units produced	1,340	490
Unit cost	125	329
Working
Machine-related
Predetermine overhead rate = $54,000/6,000 = $9
Labor-related
Predetermine overhead rate = $140,470/6,400 = $21.9484