Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $20 per unit and $45 is used in direct labor, while the direct material for the double is $35 per unit, and the labor cost is $55 per unit. Box Springs estimates it will make 5,000 twins and 10,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture? Do not round intermediate computations but round final answers for the fields below to the nearest whole number.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $20 per unit and $45 is used in direct labor, while the direct material for the double is $35 per unit, and the labor cost is $55 per unit. Box Springs estimates it will make 5,000 twins and 10,000 doubles in the next year. It estimates the
How much does each unit cost to manufacture? Do not round intermediate computations but round final answers for the fields below to the nearest whole number.
![Activity Cost
Estimated
Use per Use per
Pools
Driver
Overhead
Twin
Double
Framing
Square Feet of Pine
$240,000
5,000
3,000
Padding
Square Feet of Quilting
220,000
120,000
100,000
Filling
Square Feet of Filling
340,000
550,000
300,000
Labeling
Number of Boxes
120,000
850,000
350,000
Inspection
Number of Inspections
153,000
13,000
4,000
How much does each unit cost to manufacture? Do not round intermediate computations but round final answers for the fields below to the nearest whole number.
Total Cost per Unit
Twin
Double
Direct Material
Direct Labor Cost
Overhead
Total per Unit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7e38550-eb9e-4148-b5f4-8f82d0a62b02%2F0d406197-7a78-4f3d-a9b1-93f28b2f7276%2F9vrg3qt_processed.jpeg&w=3840&q=75)
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