Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $20 per unit and $35 is used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $45 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: Activity Cost Pools Driver Square Feet of Pine Square Feet of Quilting Square Feet of Filling Number of Boxes Number of Inspections 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 Framing Padding Filling Labeling Inspection Direct Material Direct Labor Cost Overhead Total per Unit $ Estimated Use per Use per Overhead Twin Double Twin $245,000 5,000 2,000 230,000 130,000 100,000 240,000 500,000 300,000 240,000 800,000 400,000 160,000 12,000 4,000 Double

Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $20 per unit and $35 is used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $45 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: Activity Cost Pools Driver Square Feet of Pine Square Feet of Quilting Square Feet of Filling Number of Boxes Number of Inspections 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 Framing Padding Filling Labeling Inspection Direct Material Direct Labor Cost Overhead Total per Unit $ Estimated Use per Use per Overhead Twin Double Twin $245,000 5,000 2,000 230,000 130,000 100,000 240,000 500,000 300,000 240,000 800,000 400,000 160,000 12,000 4,000 Double

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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