Staley Toy Co. makes toy flutes. Two manufacturing overhead application bases are used; some overhead is applied on the basis of machine hours at a rate of $7.80 per machine hour, and the balance of the overhead is applied at the rate of 250% of direct labor cost. Required: a. Calculate the cost per unit of October production of 4,500 toy flutes that required. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Raw materials costing $690. 23 direct labor hours costing $390. 25 machine hours. b. At the end of October, 3,920 of these toy flutes had been sold. Calculate the ending inventory value of the toy flutes still in inventory at October, 31
Staley Toy Co. makes toy flutes. Two manufacturing overhead application bases are used; some overhead is applied on the basis of machine hours at a rate of $7.80 per machine hour, and the balance of the overhead is applied at the rate of 250% of direct labor cost. Required: a. Calculate the cost per unit of October production of 4,500 toy flutes that required. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Raw materials costing $690. 23 direct labor hours costing $390. 25 machine hours. b. At the end of October, 3,920 of these toy flutes had been sold. Calculate the ending inventory value of the toy flutes still in inventory at October, 31
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 3CE: Lansing. Inc., provided the following data for its two producing departments: Machine hours are used...
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Staley Toy Co. makes toy flutes. Two manufacturing
Required:
a. Calculate the cost per unit of October production of 4,500 toy flutes that required. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
- Raw materials costing $690.
- 23 direct labor hours costing $390.
- 25 machine hours.
b. At the end of October, 3,920 of these toy flutes had been sold. Calculate the ending inventory value of the toy flutes still in inventory at October, 31.
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