Problem 6-61 (Static) Account Analysis, Two-Stage Allocation, and Product Costing (LO 6-2, 4, 5) Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow: Basic Dominator Total Units produced 1,000 250 1,250 Machine-hours 4,500 2,500 7,000 Direct labor-hours 3,000 2,000 5,000 Direct materials costs $ 10,000 $ 3,750 $ 13,750 Direct labor costs 64,500 35,500 100,000 Manufacturing overhead costs 175,000 Total costs $ 288,750 Tiger Furnishings’s CFO believes that a two-stage cost allocation system would give managers better cost information. She asks the company’s cost accountant to analyze the accounts and assign overhead costs to two pools: overhead related to direct labor cost and overhead related to machine-hours. The analysis of overhead accounts by the cost accountant follows: Manufacturing Overhead Overhead Estimate Cost Pool Assignment Utilities $ 1,800 Machine-hour related Supplies 5,000 Direct labor cost related Training 10,600 Direct labor cost related Supervision 25,800 Direct labor cost related Machine depreciation 32,100 Machine-hour related Plant depreciation 14,400 Machine-hour related Miscellaneous 85,300 Direct labor cost related Required: b. Compute the product costs per unit assuming that Tiger Furnishings uses direct labor costs and machine-hours to allocate overhead to the products. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Problem 6-61 (Static) Account Analysis, Two-Stage Allocation, and Product Costing (LO 6-2, 4, 5) Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow: Basic Dominator Total Units produced 1,000 250 1,250 Machine-hours 4,500 2,500 7,000 Direct labor-hours 3,000 2,000 5,000 Direct materials costs $ 10,000 $ 3,750 $ 13,750 Direct labor costs 64,500 35,500 100,000 Manufacturing overhead costs 175,000 Total costs $ 288,750 Tiger Furnishings’s CFO believes that a two-stage cost allocation system would give managers better cost information. She asks the company’s cost accountant to analyze the accounts and assign overhead costs to two pools: overhead related to direct labor cost and overhead related to machine-hours. The analysis of overhead accounts by the cost accountant follows: Manufacturing Overhead Overhead Estimate Cost Pool Assignment Utilities $ 1,800 Machine-hour related Supplies 5,000 Direct labor cost related Training 10,600 Direct labor cost related Supervision 25,800 Direct labor cost related Machine depreciation 32,100 Machine-hour related Plant depreciation 14,400 Machine-hour related Miscellaneous 85,300 Direct labor cost related Required: b. Compute the product costs per unit assuming that Tiger Furnishings uses direct labor costs and machine-hours to allocate overhead to the products. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Basic Dominator Total Product Costing Direct material Direct labor Overhead Machine-related Labor-related Total overhead $0 $0 $0 Total cost $0 $0 $0 Units produced Unit cost

Problem 6-61 (Static) Account Analysis, Two-Stage Allocation, and Product Costing (LO 6-2, 4, 5) Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow: Basic Dominator Total Units produced 1,000 250 1,250 Machine-hours 4,500 2,500 7,000 Direct labor-hours 3,000 2,000 5,000 Direct materials costs $ 10,000 $ 3,750 $ 13,750 Direct labor costs 64,500 35,500 100,000 Manufacturing overhead costs 175,000 Total costs $ 288,750 Tiger Furnishings’s CFO believes that a two-stage cost allocation system would give managers better cost information. She asks the company’s cost accountant to analyze the accounts and assign overhead costs to two pools: overhead related to direct labor cost and overhead related to machine-hours. The analysis of overhead accounts by the cost accountant follows: Manufacturing Overhead Overhead Estimate Cost Pool Assignment Utilities $ 1,800 Machine-hour related Supplies 5,000 Direct labor cost related Training 10,600 Direct labor cost related Supervision 25,800 Direct labor cost related Machine depreciation 32,100 Machine-hour related Plant depreciation 14,400 Machine-hour related Miscellaneous 85,300 Direct labor cost related Required: b. Compute the product costs per unit assuming that Tiger Furnishings uses direct labor costs and machine-hours to allocate overhead to the products. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Problem 6-61 (Static) Account Analysis, Two-Stage Allocation, and Product Costing (LO 6-2, 4, 5) Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow: Basic Dominator Total Units produced 1,000 250 1,250 Machine-hours 4,500 2,500 7,000 Direct labor-hours 3,000 2,000 5,000 Direct materials costs $ 10,000 $ 3,750 $ 13,750 Direct labor costs 64,500 35,500 100,000 Manufacturing overhead costs 175,000 Total costs $ 288,750 Tiger Furnishings’s CFO believes that a two-stage cost allocation system would give managers better cost information. She asks the company’s cost accountant to analyze the accounts and assign overhead costs to two pools: overhead related to direct labor cost and overhead related to machine-hours. The analysis of overhead accounts by the cost accountant follows: Manufacturing Overhead Overhead Estimate Cost Pool Assignment Utilities $ 1,800 Machine-hour related Supplies 5,000 Direct labor cost related Training 10,600 Direct labor cost related Supervision 25,800 Direct labor cost related Machine depreciation 32,100 Machine-hour related Plant depreciation 14,400 Machine-hour related Miscellaneous 85,300 Direct labor cost related Required: b. Compute the product costs per unit assuming that Tiger Furnishings uses direct labor costs and machine-hours to allocate overhead to the products. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Basic Dominator Total Product Costing Direct material Direct labor Overhead Machine-related Labor-related Total overhead $0 $0 $0 Total cost $0 $0 $0 Units produced Unit cost

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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Problem 6-61 (Static) Account Analysis, Two-Stage Allocation, and Product Costing (LO 6-2, 4, 5)

Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow:

	Basic	Dominator	Total
Units produced		1,000			250		1,250
Machine-hours		4,500			2,500		7,000
Direct labor-hours		3,000			2,000		5,000
Direct materials costs	$	10,000		$	3,750	$	13,750
Direct labor costs		64,500			35,500		100,000
Manufacturing overhead costs							175,000
Total costs						$	288,750

Tiger Furnishings’s CFO believes that a two-stage cost allocation system would give managers better cost information. She asks the company’s cost accountant to analyze the accounts and assign overhead costs to two pools: overhead related to direct labor cost and overhead related to machine-hours.

The analysis of overhead accounts by the cost accountant follows:

Manufacturing Overhead	Overhead Estimate	Cost Pool Assignment
Utilities	$	1,800	Machine-hour related
Supplies		5,000	Direct labor cost related
Training		10,600	Direct labor cost related
Supervision		25,800	Direct labor cost related
Machine depreciation		32,100	Machine-hour related
Plant depreciation		14,400	Machine-hour related
Miscellaneous		85,300	Direct labor cost related

Required:

b. Compute the product costs per unit assuming that Tiger Furnishings uses direct labor costs and machine-hours to allocate overhead to the products. (Do not round intermediate calculations. Round your final answers to the nearest whole number.)

Problem 6-61 (Static) Account Analysis, Two-Stage Allocation, and Product Costing (LO 6-2, 4, 5)

Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow:

	Basic	Dominator	Total
Units produced		1,000			250		1,250
Machine-hours		4,500			2,500		7,000
Direct labor-hours		3,000			2,000		5,000
Direct materials costs	$	10,000		$	3,750	$	13,750
Direct labor costs		64,500			35,500		100,000
Manufacturing overhead costs							175,000
Total costs						$	288,750

The analysis of overhead accounts by the cost accountant follows:

Manufacturing Overhead	Overhead Estimate	Cost Pool Assignment
Utilities	$	1,800	Machine-hour related
Supplies		5,000	Direct labor cost related
Training		10,600	Direct labor cost related
Supervision		25,800	Direct labor cost related
Machine depreciation		32,100	Machine-hour related
Plant depreciation		14,400	Machine-hour related
Miscellaneous		85,300	Direct labor cost related

Required:

	Basic	Dominator	Total
Product Costing
Direct material
Direct labor
Overhead
Machine-related
Labor-related
Total overhead	$0	$0	$0
Total cost	$0	$0	$0
Units produced
Unit cost

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