Slosh, Inc. produces washing machines that require two processes, assembling and finishing, to complete. The company's bestselling machine is the commercial washer. Information related to the 500 commercial washers produced annually is shown below.Direct materials$161,000Direct labor? Assembling Department (1,000 DLH x $25 per DLH)$25,000 Finishing Department (250 DLH x $22 per DLH)$5,500Machine hours? Assembling Department1,500 MH Finishing Department 400 MHSlosh's total expected overhead costs and related overhead data are shown below. The company uses departmental overhead rates based on direct labor hours in the Assembling Department and machine hours in the Finishing Department.?Assembling DepartmentFinishingDepartmentDirect labor hours50,000 DLH275,000 DLHMachine
hours37,500 MH8,000 MHManufacturing overhead costs$4,000,000$60,000Determine the total product cost of this product line and each individual commercial washer.
What will be an ideal response?
Assembling Dept. overhead: $4,000,000/50,000 DLH = $80 per DLH
$80 per DLH x 1,000 DLH = $80,000 for commercial washer product line
Finishing Dept. overhead: $60,000/8,000 MH = $7.50 per MH
$7.50 per MH x 400 MH = $3,000 for commercial washer product line
| ? | Total Product Line 500 units | Per Unit |
| Direct materials | $161,000 | $161,000/500 units = $322 per unit |
| Direct labor | $25,000 + $5,500 = $30,500 | $30,500/500 units = $61 per unit |
| Overhead | $80,000 + $3,000 = $83,000 | $83,000/500 units = $166 per unit |
| Total | $274,500 | $549 per unit |
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