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Problem 6-61 (Static) Product Costing (LO 6-2) 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 Product costs per unit 24,000 14,400 18,000 Standard $ 480,000 288,000 Enhanced 8,000 9,600 18,000 $ 720,000 612,000 Total Required: a. Compute the individual product costs per unit assuming that Redfern Audio uses the number of units to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor hours to allocate overhead to the products. c. Compute the individual product costs per unit assuming that Redfern Audio uses machine hours to allocate overhead to the products. Enhanced 32,000 24,000 36,000 Required A Required B Required C Compute the individual product costs per unit assuming that Redfern Audio uses the number of units the products. Note: Round your final answers to 2 decimal places. $ 1,200,000 900,000 864,000 $ 2,964,000

Problem 6-61 (Static) Product Costing (LO 6-2) 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 Product costs per unit 24,000 14,400 18,000 Standard $ 480,000 288,000 Enhanced 8,000 9,600 18,000 $ 720,000 612,000 Total Required: a. Compute the individual product costs per unit assuming that Redfern Audio uses the number of units to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor hours to allocate overhead to the products. c. Compute the individual product costs per unit assuming that Redfern Audio uses machine hours to allocate overhead to the products. Enhanced 32,000 24,000 36,000 Required A Required B Required C Compute the individual product costs per unit assuming that Redfern Audio uses the number of units the products. Note: Round your final answers to 2 decimal places. $ 1,200,000 900,000 864,000 $ 2,964,000

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 31P: Fisico Company produces exercise bikes. One of its plants produces two versions: a standard model...
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Problem 6-61 (Static) Product Costing (LO 6-2) 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 Product costs per unit 24,000 14,400 18,000 $ 480,000 288,000 Standard Enhanced 8,000 9,600 18,000 $ 720,000 612,000 Total Required: a. Compute the individual product costs per unit assuming that Redfern Audio uses the number of units to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor hours to allocate overhead to the products. c. Compute the individual product costs per unit assuming that Redfern Audio uses machine hours to allocate overhead to the products. Enhanced 32,000 24,000 36,000 Required A Required B Required C Compute the individual product costs per unit assuming that Redfern Audio uses the number of units the products. Note: Round your final answers to 2 decimal places. $ 1,200,000 900,000 864,000 $ 2,964,000
Transcribed Image Text:Problem 6-61 (Static) Product Costing (LO 6-2) 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 Product costs per unit 24,000 14,400 18,000 $ 480,000 288,000 Standard Enhanced 8,000 9,600 18,000 $ 720,000 612,000 Total Required: a. Compute the individual product costs per unit assuming that Redfern Audio uses the number of units to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor hours to allocate overhead to the products. c. Compute the individual product costs per unit assuming that Redfern Audio uses machine hours to allocate overhead to the products. Enhanced 32,000 24,000 36,000 Required A Required B Required C Compute the individual product costs per unit assuming that Redfern Audio uses the number of units the products. Note: Round your final answers to 2 decimal places. $ 1,200,000 900,000 864,000 $ 2,964,000
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