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$ 523,200$ 784,800$ 1,308,000Direct labor costs324,000666,000990,000Manufacturing overhead 950,400Total costs $ 3,248,400Required: Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products.Note: Do not round intermediate calculations. Round your answers to 2 decimal places. StandardEnhancedProduct costs per unit Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products.Note: Do not round intermediate calculations. Round your answers to 2 decimal places. StandardEnhancedProduct costs per unit

Overhead : Indirect costs incurred while producing goods or services. Overhead costs cannot be…

Answered: Redfern Audio produces audio equipment…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter15: Lean Accounting And Productivity Measurement

Section: Chapter Questions

Problem 13E: Carsen Company produces handcrafted pottery that uses two inputs: materials and labor. During the...

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	Standard	Enhanced	Total
Units produced	24,000	8,000	32,000
Machine-hours	14,400	9,600	24,000
Direct labor-hours	18,000	18,000	36,000
Direct materials costs	$ 523,200	$ 784,800	$ 1,308,000
Direct labor costs	324,000	666,000	990,000
Manufacturing overhead			950,400
Total costs			$ 3,248,400

Required:

Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the products.

Note: Do not round intermediate calculations. Round your answers to 2 decimal places.

	Standard	Enhanced
Product costs per unit

Compute the individual product costs per unit assuming that Redfern Audio uses material costs to allocate overhead to the products.

Note: Do not round intermediate calculations. Round your answers to 2 decimal places.

	Standard	Enhanced
Product costs per unit

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