One of Spa Magic's products is a whirlpool spa. Two processing departments are involved in the...

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One of Spa Magic's products is a whirlpool spa. Two processing departments are involved in the whirlpool spa's manufacture. The tub is assembled in one department, and a second department assembles and installs the motor. There was no beginning or ending work in process in either department on March 1. During March, the company incurred the following costs in the manufacture of 5,000 whirlpool spas. Direct materials Direct labor Manufacturing overhead Tub Motor Department Department $1,250,000 $750,000 100,000 60,000 600,000 30,000 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 whirlpool spa sent to the finished goods warehouse. 4. Direct 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. One of Spa Magic's products is a whirlpool spa. Two processing departments are involved in the whirlpool spa's manufacture. The tub is assembled in one department, and a second department assembles and installs the motor. There was no beginning or ending work in process in either department on March 1. During March, the company incurred the following costs in the manufacture of 5,000 whirlpool spas. Direct materials Direct labor Manufacturing overhead Tub Motor Department Department $1,250,000 $750,000 100,000 60,000 600,000 30,000 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 whirlpool spa sent to the finished goods warehouse. 4. Direct 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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a 1 390 1250000 100000 600000 5000 units 2 168 750000 60000 30000 5000 ... View the full answer