Business, 20.02.2022 14:00 zitterkoph

Real Cool produces air conditioners in two departments: Assembly and Finishing. Budgeted information follows. Department Budgeted Cost Allocation Base Budgeted Usage Assembly $ 320,000 Machine hours 6,400 machine hours Finishing 17,000 Direct labor hours 3,400 direct labor hours Additional production information for two models of its air conditioners follows. Per unit Model A Model T Selling price $ 500 $ 510 Direct materials 120 110 Direct labor 170 180 Model A Model T Units produced 300 400 Assembly machine hours per unit 3 MH 4.5 MH Finishing direct labor hours per unit 4 DLH 5 DLH 1a. Compute departmental overhead rates and determine overhead cost per unit for each model. 1b. Use machine hours to allocate budgeted Assembly costs and use direct labor hours to allocate budgeted Finishing costs. 2. Compute the total product cost per unit for each model. 3. For each model, compute the gross profit per unit (selling price per unit minus product cost per unit).

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Real Cool produces air conditioners in two departments: Assembly and Finishing. Budgeted information...

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