Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $30 per unit and $45 is used in direct labor, while the direct material for the double is $45 per unit, and the labor cost is $50 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 CostPoolsDriverEstimatedOverheadUse perTwinUse perDoubleFramingSquare Feet of Pine$270,0006,0003,000PaddingSquare Feet of Quilting230,000130,000100,000FillingSquare Feet of Filling240,000450,000350,000LabelingNumber of Boxes250,000850,000400,000InspectionNumber of Inspections165,00011,0004,000After grouping cost pools and estimating overhead and activities, Box Springs determined these rates:Purchasing (per order)$56Utilities (per square foot)2Machine Setups (per machine hour)7Supervision (per direct labor hour)4It estimates there will be 5 orders in the next year, and those jobs will involve the following:Orders5Square Feet190Machine Hours40Direct Labor Hours30Direct Materials$1,400Direct Labor Rate$20What is the total cost of the jobs?$________

Job costing is a way of accounting that allows you to keep a record of the costs of different tasks and jobs. It entails examining both direct and indirect expenses, which are often divided into three classifications: labour, materials, and overhead.Answer: Total cost of the jobs=$3,060

Answered: Box Springs, Inc., makes two sizes of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $30 per unit and $45 is used in direct labor, while the direct material for the double is $45 per unit, and the labor cost is $50 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	Estimated Overhead	Use per Twin	Use per Double
Framing	Square Feet of Pine	$270,000	6,000	3,000
Padding	Square Feet of Quilting	230,000	130,000	100,000
Filling	Square Feet of Filling	240,000	450,000	350,000
Labeling	Number of Boxes	250,000	850,000	400,000
Inspection	Number of Inspections	165,000	11,000	4,000

After grouping cost pools and estimating overhead and activities, Box Springs determined these rates:

Purchasing (per order)	$56
Utilities (per square foot)	2
Machine Setups (per machine hour)	7
Supervision (per direct labor hour)	4

It estimates there will be 5 orders in the next year, and those jobs will involve the following:

Orders	5
Square Feet	190
Machine Hours	40
Direct Labor Hours	30
Direct Materials	$1,400
Direct Labor Rate	$20

What is the total cost of the jobs?
$________

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