Answer:
a) Molding Painting Total
Product costs:
Direct materials $242,500 $211,000 $453,500
Direct labor $327,500 $219,000 $546,500
<u>Overhead $105,000 $82,500 $187,500</u>
Subtotal $675,000 $512,500 $1,187,500
Period costs (service departments):
Maintenance $191,376 $24,624 $216,000
Accounting $171,171 $227,829 $399,000
<u>Administration $153,410 $76,590 $230,000</u>
Subtotal $515,957 $329,043 $845,000
Total costs $1,190,957 $841,543 $2,032,500
2) product costs per unit:
molding = $675,000 / 100,000 units = $6.75 per unit
painting = $512,500 / 100,000 units = $5.125 per unit
total product cost per unit = $11.875 per unit
3) period costs per unit:
molding = $515,957 / 100,000 units = $5.16 per unit
painting = $329,043 / 100,000 units = $3.29 per unit
total product cost per unit = $8.45 per unit
Explanation:
Molding Painting
Building area 441,000/497,700 = 88.6% 56,700
/497,700 = 11.4%
Employees 66/154 = 42.9% 88/154 = 57.1%
Equipment value $118/$177 = 66.7% $59/$177 = 33.3%
