Question

In: Accounting

Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator....

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 1,180 390 1,570
Machine-hours 3,100 2,900 6,000
Direct labor-hours 2,200 2,100 4,300
Direct materials costs $ 18,000 $ 5,750 $ 23,750
Direct labor costs 63,000 47,000 110,000
Manufacturing overhead costs 187,810
Total costs $ 321,560


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 4,300 Direct labor cost related
Training 8,600 Direct labor cost related
Supervision 25,800 Direct labor cost related
Machine depreciation 27,000 Machine-hour related
Plant depreciation 19,500 Machine-hour related
Miscellaneous 101,110 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
Product Costing      
Direct material
Direct labor
Overhead
Machine-related
Labor-related
Total overhead $0 $0 $0
Total cost $0 $0 $0
Units produced
Unit cost

Solutions

Expert Solution

Please refer the following image for the solution:


Related Solutions

Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator....
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 950 400 1,350 Machine-hours 3,000 2,100 5,100 Direct labor-hours 3,900 2,600 6,500 Direct materials costs $ 11,000 $ 3,400 $ 14,400 Direct labor costs 71,300 36,400 107,700 Manufacturing overhead costs 220,350 Total costs $ 342,450 Required: Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead...
Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator....
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 1,000 450 1,450 Machine-hours 3,000 2,800 5,800 Direct labor-hours 2,900 2,300 5,200 Direct materials costs $ 8,200 $ 3,350 $ 11,550 Direct labor costs 58,700 31,300 90,000 Manufacturing overhead costs 183,560 Total costs $ 285,110 Required: Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead...
Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator....
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 1,500 250 1,750 Machine-hours 4,000 2,000 6,000 Direct labor-hours 2,000 1,000 3,000 Direct materials costs $ 10,000 $ 4,000 $ 14,000 Direct labor costs 64,000 40,000 104,000 Manufacturing overhead costs 182,520 Total costs $ 300,520 Required: Compute the individual product costs per unit assuming that Tiger Furnishings uses machine-hours to allocate...
Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator....
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 1,500 250 1,750 Machine-hours 3,000 2,000 5,000 Direct labor-hours 4,000 3,000 7,000 Direct materials costs $ 10,000 $ 3,500 $ 13,500 Direct labor costs 65,000 31,000 96,000 Manufacturing overhead costs 164,064 Total costs $ 273,564 Required: Compute the individual product costs per unit assuming that Tiger Furnishings uses machine-hours to allocate...
Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator....
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 1,300 380 1,680 Machine-hours 3,300 2,700 6,000 Direct labor-hours 3,400 3,700 7,100 Direct materials costs $ 19,000 $ 4,150 $ 23,150 Direct labor costs 62,500 52,500 115,000 Manufacturing overhead costs 201,200 Total costs $ 339,350 Tiger Furnishings’s CFO believes that a two-stage cost allocation system would give managers better cost information....
Gentry Cabinetry produces two models of home shelving, the Basic and the Mega. Data on operations...
Gentry Cabinetry produces two models of home shelving, the Basic and the Mega. Data on operations and costs for November are: (10 points) Basic Mega Total Machine hours 8,000 4,000 12,000 Direct labor hours 6,000 4,000 10,000 Units produced 1,000 250 1,250 Direct material costs $20,000 $7,500 $27,500 Direct labor costs 129,000 71,000 200,000 Manufacturing overhead costs 348,200 Total costs $575,700 Required: Compute the unit cost for each model (Basic & Mega), assuming Gentry Cabinetry uses: A.) Direct labor hours...
Koontz Company manufactures two models of industrial components—a Basic model and an Advanced Model. The company...
Koontz Company manufactures two models of industrial components—a Basic model and an Advanced Model. The company considers all of its manufacturing overhead costs to be fixed and it uses plantwide manufacturing overhead cost allocation based on direct labor-hours. Koontz’s controller prepared the segmented income statement that is shown below for the most recent year (he allocated selling and administrative expenses to products based on sales dollars): Basic Advanced Total Number of units produced and sold 20,000 10,000 30,000 Sales $...
Koontz Company manufactures two models of industrial components—a Basic model and an Advanced Model. The company...
Koontz Company manufactures two models of industrial components—a Basic model and an Advanced Model. The company considers all of its manufacturing overhead costs to be fixed and it uses plantwide manufacturing overhead cost allocation based on direct labor-hours. Koontz’s controller prepared the segmented income statement that is shown below for the most recent year (he allocated selling and administrative expenses to products based on sales dollars): Basic Advanced Total Number of units produced and sold 20,000 10,000 30,000 Sales $...
Koontz Company manufactures two models of industrial components—a Basic model and an Advanced Model. The company...
Koontz Company manufactures two models of industrial components—a Basic model and an Advanced Model. The company considers all of its manufacturing overhead costs to be fixed and it uses plantwide manufacturing overhead cost allocation based on direct labor-hours. Koontz’s controller prepared the segmented income statement that is shown below for the most recent year (he allocated selling and administrative expenses to products based on sales dollars): Basic Advanced Total Number of units produced and sold 20,000 10,000 30,000 Sales $...
Koontz Company manufactures two models of industrial components—a Basic model and an Advanced Model. The company...
Koontz Company manufactures two models of industrial components—a Basic model and an Advanced Model. The company considers all of its manufacturing overhead costs to be fixed and it uses plantwide manufacturing overhead cost allocation based on direct labor-hours. Koontz’s controller prepared the segmented income statement that is shown below for the most recent year (he allocated selling and administrative expenses to products based on sales dollars): Basic Advanced Total Number of units produced and sold 20,000 10,000 30,000 Sales $...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT