Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standa and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant the third quarter follow. Units produced Machine-hours Direct labor-hours Direct materials costs. Direct labor costs Manufacturing overhead Total costs Required A Required B Enhanced 8,000 111 9,600 18,000 $530,400 $ 795,600 675,000 Product costs per unit Standard 24,000 Standard 14,400 18,000 330,000 Required: a. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Total Enhanced 32,000 24,000 36,000 $ 1,326,000 1,005,000 964,800 $ 3,295,800 < Required A Required B >

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard
and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for
the third quarter follow.
Units produced
Machine-hours
Direct labor-hours
Direct materials costs
Direct labor costs
Manufacturing overhead
Total costs
Standard
24,000
14,400
18,000
$530,400
330,000
Product costs per unit
Standard
Enhanced
8,000
9,600
18,000
$ 795,600
675,000
Required:
a. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the
products.
b. Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the
products.
Enhanced
Total
Required A Required B
Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the
products.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
32,000
24,000
36,000
< Required A
$ 1,326,000
1,005,000
964,800
$ 3,295,800
Required B >
Transcribed Image Text:Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead Total costs Standard 24,000 14,400 18,000 $530,400 330,000 Product costs per unit Standard Enhanced 8,000 9,600 18,000 $ 795,600 675,000 Required: a. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products. Enhanced Total Required A Required B Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. 32,000 24,000 36,000 < Required A $ 1,326,000 1,005,000 964,800 $ 3,295,800 Required B >
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