Real Cool produces air conditioners in two departments: Assembly and Finishing. Budgeted information follows. Department Assembly Finishing Allocation Base Machine hours Direct labor hours Budgeted Usage machine hours direct labor hours. Additional production information for two models of its air conditioners follows. Budgeted Cost $ 300,000 21,000 Per unit Selling price Direct materials Direct labor Model A $ 400 100 150 Model T $ 420 90 160 Units produced Assembly machine hours per unit Finishing direct labor hours per unit Model A 400 2 MH 3 DLH 6,000 3,000 Model T 500 3.5 MH 4 DLH 1a. Compute departmental overhead rates and determine overhead cost per unit for each model. 1b. Use machine hours to allocate budgeted Assembly costs and use direct labor hours to allocate budgeted Finishing costs. 2. Compute the total product cost per unit for each model. 3. For each model, compute the gross profit per unit (selling price per unit minus product cost per unit).

Real Cool produces air conditioners in two departments: Assembly and Finishing. Budgeted information follows. Department Assembly Finishing Allocation Base Machine hours Direct labor hours Budgeted Usage machine hours direct labor hours. Additional production information for two models of its air conditioners follows. Budgeted Cost $ 300,000 21,000 Per unit Selling price Direct materials Direct labor Model A $ 400 100 150 Model T $ 420 90 160 Units produced Assembly machine hours per unit Finishing direct labor hours per unit Model A 400 2 MH 3 DLH 6,000 3,000 Model T 500 3.5 MH 4 DLH 1a. Compute departmental overhead rates and determine overhead cost per unit for each model. 1b. Use machine hours to allocate budgeted Assembly costs and use direct labor hours to allocate budgeted Finishing costs. 2. Compute the total product cost per unit for each model. 3. For each model, compute the gross profit per unit (selling price per unit minus product cost per unit).

Name: Real Cool produces air conditioners in two departments: Assembly and
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Real Cool produces air conditioners in two departments: Assembly and Finishing. Budgeted information follows.DepartmentAssemblyFinishingBudgeted Cost$ 300,000Allocation BaseMachine hoursBudgeted Usagemachine hours21,000Direct labor hoursAdditional p

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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