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. StandardEnhancedTotalUnits produced24,0008,00032,000Machine-hours14,4009,60024,000Direct labor-hours18,00018,00036,000Direct materials costs$ 489,600$ 734,400$ 1,224,000Direct labor costs293,760624,240918,000Manufacturing overhead 869,760Total costs $ 3,011,760Required:Compute the individual product costs per unit assuming that Redfern Audio uses the number of units to allocate overhead to the products.Compute the individual product costs per unit assuming that Redfern Audio uses direct labor hours to allocate overhead to the products.Compute the individual product costs per unit assuming that Redfern Audio uses machine hours to allocate overhead to the products. StandardEnhancedProduct costs per unit

1. Allocate Overhead Based on Units ProducedStep 1: Calculate overhead rate:Overhead rate = Total…

Answered: Standard Enhanced Product costs per…

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1Q: Define and explain contribution margin on a per unit basis.

Compute the individual product costs per unit assuming that Redfern Audio uses the number of units to allocate overhead to the products.
Compute the individual product costs per unit assuming that Redfern Audio uses direct labor hours to allocate overhead to the products.
Compute the individual product costs per unit assuming that Redfern Audio uses machine hours to allocate overhead to the products.