Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 is used in direct labor, while the direct material for the double is $45 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 10,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows:Activity CostPoolsDriverEstimatedOverheadUse perTwinUse perDoubleFramingSquare Feet of Pine$200,0005,0003,000PaddingSquare Feet of Quilting210,000120,00090,000FillingSquare Feet of Filling255,000500,000350,000LabelingNumber of Boxes250,000850,000400,000InspectionNumber of Inspections153,00013,0004,000How much does each unit cost to manufacture? Do not round intermediate computations but round final answers for the fields below to the nearest whole number.Total Cost per UnitTwinDoubleDirect Material$fill in the blank 1$fill in the blank 2Direct Labor Costfill in the blank 3fill in the blank 4Overheadfill in the blank 5fill in the blank 6Total per Unit$fill in the blank 7$fill in the blank 8

In this question, we have to find out the unit cost to manufacture each unit

Answered: ngs, Inc., makes two sizes of box…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 is used in direct labor, while the direct material for the double is $45 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 10,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows:

Activity Cost Pools	Driver	Estimated Overhead	Use per Twin	Use per Double
Framing	Square Feet of Pine	$200,000	5,000	3,000
Padding	Square Feet of Quilting	210,000	120,000	90,000
Filling	Square Feet of Filling	255,000	500,000	350,000
Labeling	Number of Boxes	250,000	850,000	400,000
Inspection	Number of Inspections	153,000	13,000	4,000

How much does each unit cost to manufacture? Do not round intermediate computations but round final answers for the fields below to the nearest whole number.

Total Cost per Unit	Twin	Double
Direct Material	$fill in the blank 1	$fill in the blank 2
Direct Labor Cost	fill in the blank 3	fill in the blank 4
Overhead	fill in the blank 5	fill in the blank 6
Total per Unit	$fill in the blank 7	$fill in the blank 8

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