Problem 6-46 Product Costing (LO 6-4) Tiger Furnishings produces two models of c
ID: 2412238 • Letter: P
Question
Problem 6-46 Product Costing (LO 6-4) Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations a Basic Dominator Total 1,500 Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs 1,800 300 2,000 3,000 4,000 3,000 $12,000 56,000 6,000 6,000 4,000 16,000 95,000 161,975 39,000 Total costs $272,975 Required Compute the individual product costs per unit assuming that Tiger Furnishings uses direct labor costs to allocate overhead to the pro answers to 2 decimal places.) Unit Cost Basic Dominator ReferencesExplanation / Answer
Unit Cost
Basic
$ 108.99
Dominator
$ 364.98
Calculations
Basic
Dominator
Total
Direct Material cost
12,000
4,000
16,000
Direct Labor cost
56,000
39,000
95,000
Manufacturing Overhead cost
95,480
66,495
161,975
Total Cost
163,480
109,495
272,975
Units produced
1,500 Units
300 Units
Unit Cost
108.99
364.98
Manufacturing overhead cost Allocation rate = [$161,975 / 95,000] x 100 = 170.50%
Basic = $56,000 x 170.50% = $95,480
Dominator = $39,000 x 170.50% = $66,495
Unit Cost
Basic
$ 108.99
Dominator
$ 364.98