One of Sun Appliance's products is a dishwasher. Two processing departments are involved in the dishwasher's manufacture.
Question:
..........................................................Tub Department ..........Motor Department
Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $160,000....................... $80,000
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . 15,000 ........................20,000
Manufacturing overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000 ........................12,000
Instructions
a. Compute the following per-unit costs for the month of March.
1. A tub assembly transferred to the Motor Department.
2. Assembling a motor and installing it.
3. A completed dishwasher.
4. Materials used in assembling a tub.
5. Direct labor cost of assembling and installing a motor.
b. Which of these unit costs would be most useful to management in evaluating the overall monthly efficiency of the Motor Department? Explain your reasoning.
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Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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