Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $20 per unit and $35 is used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $45 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 $180,000 4,000 2,000 Square Feet of Quilting 230,000 130,000 100,000 Square Feet of Filling 210,000 450,000 250,000 Labeling Number of Boxes 240,000 750,000 450,000 Inspection Number of Inspections 160,000 11,000 5,000
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 Padding Filling number.
Total Cost per Unit Double Twin
Direct Material 40 20
Direct Labor Cost 45 35
Overhead
Total per Unit $ $
Answers: 2
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Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...
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