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 i Total costs Standard Product costs per unit Standard 24,000 Enhanced 4,000 9,600 171 18,000 $914,400 774,000 14,400 18,000 $ 609,600 396,000 Total 32,000 Enhanced 24,000 36,000 $1,524,000 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. 1,170,000 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. 1,123,200 $3,817,200 Required B >

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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 i
Total costs
Standard
24,000
14,400
18,000
$609,600
396,000
Product costs per unit
Enhanced
8,000
9,600
18,000
Standard
$ 914,400
774,000
Required:
a. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the
products.
Total
b. Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the
products
Enhanced
32,000
24,000
36,000
$ 1,524,000
1,170,000
1,123,200
$3,817,200
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.
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 i Total costs Standard 24,000 14,400 18,000 $609,600 396,000 Product costs per unit Enhanced 8,000 9,600 18,000 Standard $ 914,400 774,000 Required: a. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products. Total b. Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products Enhanced 32,000 24,000 36,000 $ 1,524,000 1,170,000 1,123,200 $3,817,200 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. Required B >
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
$ 609,600
396,000
Product costs per unit
Enhanced
8,000
9,600
15,000
$ 914,400
774,000
Standard
Total
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.
32,000
24,000
36,000
Required A Required B
Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the
products.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
Enhanced
< Required A
$ 1,524,000
1,170,000.
1,123,200
$ 3,817,200
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 $ 609,600 396,000 Product costs per unit Enhanced 8,000 9,600 15,000 $ 914,400 774,000 Standard Total 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. 32,000 24,000 36,000 Required A Required B Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Enhanced < Required A $ 1,524,000 1,170,000. 1,123,200 $ 3,817,200
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