The company Athlete produces two types of sports shoes. One is the CURRY model, another Its...
The company Athlete produces two types of sports shoes. One is the CURRY model, another Its LEBRON model. The cost of direct materials is $ 10 and $ 5 respectively. They require $ 12 and $ 8 of direct labor, respectively. Shoes are produced and sold by pair. Indirect manufacturing costs total $ 120,000. The company takes an hour and a half to make CURRY shoes and one hour to make LEBRON shoes. The machine hours are distributed in 4 hours for CURRY and 2 hours for LEBRON. The total labor cost used in CURRY is of $ 96,000. For every three pairs of shoes that the company does, two are CURRY models and one is the LEBRON model.
Required determine the cost per unit and total of both models of shoes under the following premises:
a. The company distributes the indirect costs using the hours of direct labor.
b. The company distributes the indirect costs using the units produced.
c. The company distributes the indirect costs using machine hours.
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The company Athlete produces two types of sports shoes. One is
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