Reference no: EM13336127

Problem 6-47 Account Analysis, Two-Stage Allocation, and Product Costing (LO 6-2, 4, 5)
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 1,100 380 1,480
Machine-hours 3,800 3,200 7,000
Direct labor-hours 3,800 3,800 7,600

Direct materials costs $ 13,000 $ 5,650 $ 18,650
Direct labor costs 62,500 37,500 100,000
Manufacturing overhead costs 190,600

Total costs $ 309,250


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 4,400 Direct labor cost related
Training 8,800 Direct labor cost related
Supervision 22,800 Direct labor cost related
Machine depreciation 30,000 Machine-hour related
Plant depreciation 31,500 Machine-hour related
Miscellaneous 91,600 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 the direct-labor cost rate in your intermediate calculations. Round your answers to two decimal places.)