Question

Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $45 is used in direct labor, while the direct material for the double is $45 per unit, and the labor cost is $45 per unit. Box Springs estimates it will make 5,000 twins and 10,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows:

Activity Cost Pools	Driver	Estimated Overhead	Use per Twin	Use per Double
Framing	Square Feet of Pine	$210,000	4,000	3,000
Padding	Square Feet of Quilting	230,000	120,000	110,000
Filling	Square Feet of Filling	225,000	450,000	300,000
Labeling	Number of Boxes	250,000	850,000	400,000
Inspection	Number of Inspections	190,000	13,000	6,000

How much does each unit cost to manufacture? Do not round intermediate computations but round final answers for the fields below to the nearest whole number.

Total Cost per Unit	Twin	Double
Direct Material	$	$
Direct Labor Cost
Overhead
Total per Unit	$	$

Answer 1

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