QUESTION41.

Aldebaran designs, produces

and markets two types of fireworks: Chinese Dragon and Space Tornado. They are

made from chemical components assembled in two separate workshops, Workshop 1

and Workshop 2.

The production parameters of these two products are given below:

 Aldebaran's indirect costs are divided into three departments:

Quality

: this

department is responsible for quality control on the various products. It is

considered that the more products are manufactured, the more quality controls

there will be, the more work the department will have. The allocation base

chosen for this center is the total number of quality checks performed. The

total indirect costs of the department are $182,000.

Workshop 1

: this first workshop is responsible for a first assembly of the

fireworks. The allocation base chosen to allocate the indirect costs of

Workshop 1 to the products is the total number of machine hours. The total indirect

costs of Workshop 1 are $126,000.

Workshop 2

: this second workshop finalizes the assembly of the fireworks. In this

Workshop 2, the allocation base chosen to allocate indirect costs to products

is the total number of hours of labor. The total indirect costs of Workshop 2

are $51,000.

In July, we produced and sold 1,000 Chinese Dragons and 2,000 Space

Tornados.

Calculate the unit cost of the allocation base of Workshop 1.