1 Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. 10 points Units produced Skipped Machine-hours Direct labor-hours Direct materials costs Standard 24,000 14,400 18,000 $ 480,000 Enhanced 8,000 9,600 18,000 $ 720,000 Total 32,000 24,000 36,000 Direct labor costs 288,000 612,000 eBook Manufacturing overhead Total costs $ 1,200,000 900,000 864,000 $ 2,964,000 Required: Print References a. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products. Required A Required B Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products. Note: Round your answers to 2 decimal places. Product costs per unit Standard Enhanced < Required A Required B 1 10 points Skipped Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Units produced Machine-hours Direct labor-hours Direct materials costs Standard 24,000 14,400 18,000 $ 480,000 288,000 Enhanced 8,000 9,600 18,000 $ 720,000 Total 32,000 24,000 36,000 $ 1,200,000 612,000 900,000 864,000 Total costs eBook $ 2,964,000 Direct labor costs Manufacturing overhead Print References Required: a. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products. Required A Required B Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. Note: Round your answers to 2 decimal places. Product costs per unit Standard Enhanced < Required A Required B >

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1
Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard
and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for
the third quarter follow.
10
points
Units produced
Skipped
Machine-hours
Direct labor-hours
Direct materials costs
Standard
24,000
14,400
18,000
$ 480,000
Enhanced
8,000
9,600
18,000
$ 720,000
Total
32,000
24,000
36,000
Direct labor costs
288,000
612,000
eBook
Manufacturing overhead
Total costs
$ 1,200,000
900,000
864,000
$ 2,964,000
Required:
Print
References
a. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the
products.
b. Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the
products.
Required A Required B
Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the
products.
Note: Round your answers to 2 decimal places.
Product costs per unit
Standard
Enhanced
< Required A
Required B
Transcribed Image Text:1 Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. 10 points Units produced Skipped Machine-hours Direct labor-hours Direct materials costs Standard 24,000 14,400 18,000 $ 480,000 Enhanced 8,000 9,600 18,000 $ 720,000 Total 32,000 24,000 36,000 Direct labor costs 288,000 612,000 eBook Manufacturing overhead Total costs $ 1,200,000 900,000 864,000 $ 2,964,000 Required: Print References a. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products. Required A Required B Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products. Note: Round your answers to 2 decimal places. Product costs per unit Standard Enhanced < Required A Required B
1
10
points
Skipped
Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard
and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for
the third quarter follow.
Units produced
Machine-hours
Direct labor-hours
Direct materials costs
Standard
24,000
14,400
18,000
$ 480,000
288,000
Enhanced
8,000
9,600
18,000
$ 720,000
Total
32,000
24,000
36,000
$ 1,200,000
612,000
900,000
864,000
Total costs
eBook
$ 2,964,000
Direct labor costs
Manufacturing overhead
Print
References
Required:
a. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the
products.
b. Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the
products.
Required A
Required B
Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the
products.
Note: Round your answers to 2 decimal places.
Product costs per unit
Standard
Enhanced
< Required A
Required B >
Transcribed Image Text:1 10 points Skipped Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Units produced Machine-hours Direct labor-hours Direct materials costs Standard 24,000 14,400 18,000 $ 480,000 288,000 Enhanced 8,000 9,600 18,000 $ 720,000 Total 32,000 24,000 36,000 $ 1,200,000 612,000 900,000 864,000 Total costs eBook $ 2,964,000 Direct labor costs Manufacturing overhead Print References Required: a. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products. Required A Required B Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. Note: Round your answers to 2 decimal places. Product costs per unit Standard Enhanced < Required A Required B >
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