Pear Computers assembles computer parts into finished systems for sale through mass market retailers. It sells two models differentiated by the speed of the processor and other peripherals, the X3G and the X2G. Data on the two models for April follow. The time required for either unit is the same. Pear Computers uses operations costing and assigns direct labor and overhead based on the number of units assembled. Compute the cost of the X3G and X2G models for April.
|
|
X3G |
X2G |
Total |
|
Number of units . . |
6,000 |
14,000 |
20,000 |
|
Parts cost |
|
|
|
|
per unit |
$ 250 |
$ 175 |
|
|
Parts cost |
$1,500,000 |
$2,450,000 |
$3,950,000 |
|
Other costs: |
|
|
|
|
Direct labor |
|
|
$ 414,000 |
|
Overhead |
|
|
806,000 |
|
Total |
|
|
$1,220,000 |