Second department assembles and installs the motor

Reference no: EM131103768

One of Sun Appliance's products is a dishwasher. Two processing departments are involved in the dishwasher's manufacture. The tub is assembled in one department, and a second department assem- bles and installs the motor. There is no beginning or ending work in process in either department. During March, the company incurred the following costs in the manufacture of 4,000 dishwashers.

	Tub Department	Motor Department
Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$150,000	$96,000
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12,000	18,000
Manufacturing overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	18,000	6,000

Instructions

a. Compute the following per-unit costs for the month of March:

1. A tub assembly transferred to the Motor Department.

2. Assembling a motor and installing it.

3. A completed dishwasher.

4. Materials used in assembling a tub.

5. Direct labor cost of assembling and installing a motor.

b. Which of these unit costs would be most useful to management in evaluating the overall monthly efficiency of the Motor Department? Explain your reasoning.

Reference no: EM131103768

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