Tiger Furnishings produces two models of cabinets for home theater components, t

Question

Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow:

Compute the individual product costs per unit assuming that Tiger Furnishings uses direct labor costs to allocate overhead to the products. (Do not round intermediate calculations. Round final answers to 2 decimal places.)

How much is unit cost for Basic and Dominator?

Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow:

Explanation / Answer

Overhead Recovery rate = 161276/92000 = $1.753 per dollar of direct wages

Unit Cost:

1.753 x 56000

= 98168

1.753 x 36000

= 63108

Basic Dominator Direct Materials 11000 3500 Direct Labour 56000 36000 Manufacturing overead

1.753 x 56000

= 98168

1.753 x 36000

= 63108

Total costs $165168 $102608 No. of units 1250 250 Unit cost $132.13 $410.43

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