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Question - Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 is used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows:
Activity Cost Pools
Driver
Estimated Overhead
Use Per Twin
Use Per Double
Framing
Square feet of pine
210,000
5,000
2,000
Padding
Square feet of quilting
220,000
120,000
100,000
Filling
Square feet of filling
320,000
500,000
300,000
Labelling
Number of boxes
240,000
800,000
400,000
Inspection
Number of inspections
170,000
12,000
For Question 1, what is the Activity Rate for the Framing pool?
Using the table from Question 1, what is the Activity Rate for the Inspection pool?
Using the table from Question 1, what is the Total Cost Per Twin?
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