Sportway Inc. produces high-quality tennis racquets and golf clubs using a patented forming process and high-quality hand-finishing. Products move through two production departments: Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machine-hours in Forming and direct labour cost in Finishing. Information related to costs for last year is provided below: Annual production and sales (units) Direct materials cost per unit Direct labour cost per unit: Forming Department Finishing Department Machine-hours per unit: Forming Department Finishing Department Tennis Golf Racquets Clubs 6,800 10,700 $ 5.10 $ 4.20 $ 7.00 $ 6.50 $ 6.00 $ 7.00 0.25 0.00 0.25 0.50 In addition, the firm budgets manufacturing overhead at $62,750 in the Forming Department and $64,500 in the Finishing Department. Determine the total cost per unit of tennis racquets and golf clubs.
Sportway Inc. produces high-quality tennis racquets and golf clubs using a patented forming process and high-quality hand-finishing. Products move through two production departments: Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machine-hours in Forming and direct labour cost in Finishing. Information related to costs for last year is provided below: Annual production and sales (units) Direct materials cost per unit Direct labour cost per unit: Forming Department Finishing Department Machine-hours per unit: Forming Department Finishing Department Tennis Golf Racquets Clubs 6,800 10,700 $ 5.10 $ 4.20 $ 7.00 $ 6.50 $ 6.00 $ 7.00 0.25 0.00 0.25 0.50 In addition, the firm budgets manufacturing overhead at $62,750 in the Forming Department and $64,500 in the Finishing Department. Determine the total cost per unit of tennis racquets and golf clubs.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Sportway Inc. produces high-quality tennis racquets and golf clubs using a patented forming process and high-quality hand-finishing. Products
move through two production departments: Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs.
Overhead is allocated based on machine-hours in Forming and direct labour cost in Finishing. Information related to costs for last year is
provided below:
Annual production and sales (units)
Direct materials cost per unit
Direct labour cost per unit:
Forming Department
Finishing Department
Machine-hours per unit:
Forming Department
Finishing Department
Tennis Golf
Racquets Clubs
6,800 10,700
$ 5.10 $ 4.20
$ 7.00 $ 6.50
$ 6.00 $ 7.00
0.25
0.00
0.25
0.50
In addition, the firm budgets manufacturing overhead at $62,750 in the Forming Department and $64,500 in the Finishing Department.
Determine the total cost per unit of tennis racquets and golf clubs.
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