hone Activity Cost Pools tits 3 PA6. LO 6.3 Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 is used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: Framing Padding Filling Labeling Inspection nh...- Estimated Overhead 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? 210,000 220,000 320,000 240,000 170,000 Use per Twin 5,000 120,000 500,000 800,000 12,000 Use per Double 2,000 100,000 300,000 400,000 5,000
hone Activity Cost Pools tits 3 PA6. LO 6.3 Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 is used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: Framing Padding Filling Labeling Inspection nh...- Estimated Overhead 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? 210,000 220,000 320,000 240,000 170,000 Use per Twin 5,000 120,000 500,000 800,000 12,000 Use per Double 2,000 100,000 300,000 400,000 5,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:fina
benefits
Activity Cost
Pools
ni h
PA6. LO 6.3 Box Springs, Inc., makes two sizes of box springs: twin and double. The direct
material for the twin is $25 per unit and $40 is used in direct labor, while the direct material for
the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make
cost driver activities as follows:
5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and
Framing
Padding
Filling
Labeling
Inspection
Estimated
Overhead
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?
210,000
220,000
320,000
240,000
170,000
Use per
Twin
5,000
120,000
500,000
800,000
12,000
Use per
Double
A
2,000
100,000
300,000
400,000
5,000
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