Required information [The following information applies to the questions displayed below.] Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs Required A Required B KA-15 Required C Product costs per unit 600 360 750 $ 82,000 16,500 Required: a. Compute the individual product costs per unit assuming that Kilbourne Appliances uses the number of units to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct labor cost. c. Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct material costs to allocate overhead to the products. KA-24 400 540 1,750 $ 130,000 38,500 KA-15 KA-24 $ 222,520.00 $ 251,180.00 Total 1,000 900 2,500 $ 212,000 55,000 206,700 $ 473,700 Compute the individual product costs per unit assuming that Kilbourne Appliances uses the number of units to allocate overhead to the products. Note: Do not round your intermediate calculations. Round your final answers to 2 decimal places.
Required information [The following information applies to the questions displayed below.] Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs Required A Required B KA-15 Required C Product costs per unit 600 360 750 $ 82,000 16,500 Required: a. Compute the individual product costs per unit assuming that Kilbourne Appliances uses the number of units to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct labor cost. c. Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct material costs to allocate overhead to the products. KA-24 400 540 1,750 $ 130,000 38,500 KA-15 KA-24 $ 222,520.00 $ 251,180.00 Total 1,000 900 2,500 $ 212,000 55,000 206,700 $ 473,700 Compute the individual product costs per unit assuming that Kilbourne Appliances uses the number of units to allocate overhead to the products. Note: Do not round your intermediate calculations. Round your final answers to 2 decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![### Required Information
**[The following information applies to the questions displayed below.]**
Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March are as follows:
| | KA-15 | KA-24 | Total |
|------------------|-------|-------|--------|
| Units produced | 600 | 400 | 1,000 |
| Machine-hours | 360 | 540 | 900 |
| Direct labor-hours| 750 | 1,750 | 2,500 |
| Direct materials costs | $82,000 | $130,000 | $212,000 |
| Direct labor costs | $16,500 | $38,500 | $55,000 |
| Manufacturing overhead costs | | | $206,700 |
| **Total costs** | | | $473,700 |
### Required:
**a.** Compute the individual product costs per unit assuming that Kilbourne Appliances uses the number of units to allocate overhead to the products.
**b.** Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct labor cost.
**c.** Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct material costs to allocate overhead to the products.
### Detailed Explanation
- **Table with Tabs:** There are three tabs labeled Required A, Required B, and Required C, for calculating and displaying the product costs per unit according to different methods of overhead allocation.
- **Note:** “Do not round your intermediate calculations. Round your final answers to 2 decimal places.”
- **Example Calculation (Required A):**
| | KA-15 | KA-24 |
|-------|-------------|-------------|
| Product costs per unit | $222,520.00 | $251,180.00 |
This section is completed based on the number of units, and is visible under "Required A."
For detailed and exact calculations, users are advised to compute the overhead allocated per unit according to the method specified (e.g., number of units, direct labor costs, or direct material costs).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ad5c3b3-0e2c-4016-9024-adf9ec248309%2F8c0a5281-1c16-443e-8b78-54add83de4ef%2Fsctrrf_processed.png&w=3840&q=75)
Transcribed Image Text:### Required Information
**[The following information applies to the questions displayed below.]**
Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March are as follows:
| | KA-15 | KA-24 | Total |
|------------------|-------|-------|--------|
| Units produced | 600 | 400 | 1,000 |
| Machine-hours | 360 | 540 | 900 |
| Direct labor-hours| 750 | 1,750 | 2,500 |
| Direct materials costs | $82,000 | $130,000 | $212,000 |
| Direct labor costs | $16,500 | $38,500 | $55,000 |
| Manufacturing overhead costs | | | $206,700 |
| **Total costs** | | | $473,700 |
### Required:
**a.** Compute the individual product costs per unit assuming that Kilbourne Appliances uses the number of units to allocate overhead to the products.
**b.** Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct labor cost.
**c.** Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct material costs to allocate overhead to the products.
### Detailed Explanation
- **Table with Tabs:** There are three tabs labeled Required A, Required B, and Required C, for calculating and displaying the product costs per unit according to different methods of overhead allocation.
- **Note:** “Do not round your intermediate calculations. Round your final answers to 2 decimal places.”
- **Example Calculation (Required A):**
| | KA-15 | KA-24 |
|-------|-------------|-------------|
| Product costs per unit | $222,520.00 | $251,180.00 |
This section is completed based on the number of units, and is visible under "Required A."
For detailed and exact calculations, users are advised to compute the overhead allocated per unit according to the method specified (e.g., number of units, direct labor costs, or direct material costs).
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