A+ Work

GUTIERREZ COMPANY  

Basic Production Information: Sportsman Expedition    

Direct materials cost per unit  $            20   $            28     

Direct labor cost per unit    $            15   $            19     

Sales price per unit    $            82   $          105     

Expected production per month (units)           1,200               960     

Overhead cost pools:          

Setup cost      $       2,600       

Quality control             5,500       

Maintenance               3,080       

Total monthly overhead    $     11,180       

Cost drivers:   Sportsman Expedition Total  

Number of setups                  14                 26                 40   

Number of inspections                140               300               440   

Number of machine hours             1,400            1,400            2,800