Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the...

 

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Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs KA-15 600. KA-24 400 360 750 $ 76,000 540 1,750 $ 124,000 Total 1,000 900 2,500 $ 200,000 15,600 36,400 52,000 195,000 $447,000 Problem 6-65 (Algo) Product Costing (LO 6-2) Required: a. Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct labor-hours to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Kilbourne Appliances uses machine-hours to allocate overhead to the products. Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs KA-15 600. KA-24 400 360 750 $ 76,000 540 1,750 $ 124,000 Total 1,000 900 2,500 $ 200,000 15,600 36,400 52,000 195,000 $447,000 Problem 6-65 (Algo) Product Costing (LO 6-2) Required: a. Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct labor-hours to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Kilbourne Appliances uses machine-hours to allocate overhead to the products.