Gerald Boards produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow. Basco Boards Shimano Boards Production costs $ $ $ $ $ $ Direct materials 25.10 38.20 Direct labor 31.10 53.20 Allocated overhead 15.55 20.20 Total units produced and sold Total sales revenue 9,100 5,100 $456,450 $1,192,100 Gerald allocates production overhead using activity-based costing. It allocates delivery expense and sales commissions, which amount to $59,500 per quarter, to the two products equally. Required: a. Compute the per-unit cost for each product. (Round your answers to 2 decimal places.) Basco Boards Shimano Boards Cost per unit b. Compute the profit for each product. Basco Boards Shimano Boards Profit
Gerald Boards produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow. Basco Boards Shimano Boards Production costs $ $ $ $ $ $ Direct materials 25.10 38.20 Direct labor 31.10 53.20 Allocated overhead 15.55 20.20 Total units produced and sold Total sales revenue 9,100 5,100 $456,450 $1,192,100 Gerald allocates production overhead using activity-based costing. It allocates delivery expense and sales commissions, which amount to $59,500 per quarter, to the two products equally. Required: a. Compute the per-unit cost for each product. (Round your answers to 2 decimal places.) Basco Boards Shimano Boards Cost per unit b. Compute the profit for each product. Basco Boards Shimano Boards Profit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
It asked us to answer Round your answers to 2 decimal places.)
Transcribed Image Text:Gerald Boards produces two kinds of skateboards. Selected unit data for the two boards
for the last quarter follow.
Basco Boards Shimano Boards
Production costs
$
$
$
$
$
$
Direct materials
25.10
38.20
Direct labor
31.10
53.20
Allocated overhead
15.55
20.20
Total units produced
and sold
Total sales revenue
9,100
5,100
$456,450
$1,192,100
Gerald allocates production overhead using activity-based costing. It allocates
delivery expense and sales commissions, which amount to $59,500 per quarter, to the
two products equally.
Required:
a. Compute the per-unit cost for each product. (Round your answers to 2 decimal
places.)
Basco Boards
Shimano Boards
Cost per unit
b. Compute the profit for each product.
Basco Boards Shimano Boards
Profit
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