Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $30 per unit and $45 is used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 10,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: Activity Cost Estimated Use per Use per Pools Driver Overhead Twin Double Framing Square Feet of Pine $280,000 6,000 2,000 Padding Square Feet of Quilting 210,000 110,000 100,000 Filling Square Feet of Filling 240,000 550,000 250,000 Labeling Number of Boxes 110,000 750,000 350,000 Inspection Number of Inspections 150,000 11,000 4,000 How much does each unit cost to manufacture? Do not round intermediate computations but round final answers for the fields below to the nearest whole number. Total Cost per Unit Twin Double Direct Material Direct Labor Cost Overhead Total per Unit II

Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $30 per unit and $45 is used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 10,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: Activity Cost Estimated Use per Use per Pools Driver Overhead Twin Double Framing Square Feet of Pine $280,000 6,000 2,000 Padding Square Feet of Quilting 210,000 110,000 100,000 Filling Square Feet of Filling 240,000 550,000 250,000 Labeling Number of Boxes 110,000 750,000 350,000 Inspection Number of Inspections 150,000 11,000 4,000 How much does each unit cost to manufacture? Do not round intermediate computations but round final answers for the fields below to the nearest whole number. Total Cost per Unit Twin Double Direct Material Direct Labor Cost Overhead Total per Unit II

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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