Reference no: EM132826018
Question - Having difficulty understanding the calculations and need a step-by-step tutorial on the problem. 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 1,460 260 1,720
Machine-hours 3,500 2,500 6,000
Direct labor-hours 3,600 3,900 7,500
Direct materials costs $15,000 $4,350 $19,350
Direct labor costs 64,500 50,500 115,000
Manufacturing overhead costs 194,970
Total costs $329,320
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 $1,600 Machine-hour related
Supplies 4,800 Direct labor cost related
Training 9,600 Direct labor cost related
Supervision 23,800 Direct labor cost related
Machine depreciation 25,000 Machine-hour related
Plant depreciation 21,400 Machine-hour related
Miscellaneous 108,770 Direct labor cost related
Required - Compute the product costs per unit assuming that Tiger Furnishings uses direct labor costs and machine-hours to allocate overhead to the products.
|
What is the largest loan you can obtain
: You would like to purchase a home and are interested to find out how much you can borrow. When your lender calculates your debt to income ratio
|
|
How much will a bag of chips cost
: If the price of chips only moves with inflation, and inflation is a constant 4% per year, how much will a bag of chips cost in 45 years
|
|
Estimate the cash flows to the firm
: If a company grows primarily through acquisitions, and we are trying to estimate the cash flows to the firm
|
|
What can we expect to learn in the future
: Psychology is a contemporary science. Listed below are several recent papers. For the first part of this assignment, choose two papers to briefly summarize.
|
|
Compute the product costs per unit
: Compute the product costs per unit assuming that Tiger Furnishings uses direct labor costs and machine-hours to allocate overhead to the products
|
|
Calculate the price of a bond
: Why do we use the market interest rate to calculate the price of a bond, rather than the bond's stated interest rate?
|
|
What is the largest loan you can obtain
: You would like to purchase a home and are interested to find out how much you can borrow. When your lender calculates your debt to income ratio
|
|
Was the scientific method followed
: The scientific method allows us to pose questions, test questions, and analyze results. Through observation and research, we begin to understand the world.
|
|
Computing projected earnings and include acquisitions
: If a company grows primarily through acquisitions, and we are trying to estimate the cash flows to the firm, which of the following estimation choices is likely
|