2 Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Units produced Machine-hours 02:22:17 Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead. Standard 24,000 14,400 18,000 $ 537,600 336,000 Enhanced 8,000 9,600 18,000 $ 806,400 684,000 Total 32,000 24,000 36,000 $ 1,344,000 1,020,000 979,200 Total costs $ 3,343,200 eBook 2 Required: a. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products. Required A Required B Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Standard Product costs per unit Enhanced < Required A Required B > Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. 02:21:51 eBook Units produced Machine-hours Direct labor-hours Standard 24,000 14,400 18,000 Direct materials costs $ 537,600 336,000 Enhanced 8,000 9,600 18,000 $ 806,400 684,000 Total 32,000 24,000 36,000 $ 1,344,000 1,020,000 979,200 $ 3,343,200 Direct labor costs Manufacturing overhead Total costs Required: a. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products. Required A Required B Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Standard Product costs per unit Enhanced
2 Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Units produced Machine-hours 02:22:17 Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead. Standard 24,000 14,400 18,000 $ 537,600 336,000 Enhanced 8,000 9,600 18,000 $ 806,400 684,000 Total 32,000 24,000 36,000 $ 1,344,000 1,020,000 979,200 Total costs $ 3,343,200 eBook 2 Required: a. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products. Required A Required B Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Standard Product costs per unit Enhanced < Required A Required B > Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. 02:21:51 eBook Units produced Machine-hours Direct labor-hours Standard 24,000 14,400 18,000 Direct materials costs $ 537,600 336,000 Enhanced 8,000 9,600 18,000 $ 806,400 684,000 Total 32,000 24,000 36,000 $ 1,344,000 1,020,000 979,200 $ 3,343,200 Direct labor costs Manufacturing overhead Total costs Required: a. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products. Required A Required B Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Standard Product costs per unit Enhanced
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...
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