3.
Fifer Company produces two types of entry doors: the Hollow Core
and the Solid Door models. The Company has used direct labor
dollars to allocate the overhead cost $47,450,000.
The company’s CFO, Brian Smythe , has offered the following
information regarding the two products:
Hollow Core Solid Door
Sales in units
400,000 50,000
Sales price per unit
$475.00
$650.00
Direct materials per unit
55.00 130.00
Direct labor cost per
unit
75.00 50.00
The company has hired you...