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Manufacturing overhead-multiple application bases. Staley Toy Co. makes toy flutes. Two manufacturing overhead application bases are used; some overhead is applied on the basis of machine hours at a rate of $5.60 per machine hour, and the balance of the overhead is applied at the rate of 240% of direct labor cost.Required:
a. Calculate the cost per unit of October production of 4,200 toy flutes that required1. Raw materials costing $490.2. 21 direct labor hours costing $357.3. 36 machine hours.b. At the end of October, 3,870 of these toy flutes had been sold. Calculate the ending inventory value of the toy flutes still in inventory at October, 31.
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