Question

Braverman Company has two manufacturing departments—Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $24.00 per direct labor-hour and 120% of direct materials cost, respectively. The company’s direct labor wage rate is $30.00 per hour. The following information pertains to Job 700: Finishing Fabrication Direct materials $ 480 $ 105 Direct labor $ 270 $ 150 Required: 1. What is the total manufacturing cost assigned to Job 700? 2. If Job 700 consists of 10 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)

Answer 1

Answer:

Instructions are below.

Explanation:

Giving the following information:

The predetermined overhead rate:

Finishing= $24 per direct labor hour

Fabrication= 120% of direct materials cost.

The company’s direct labor wage rate is $30.00 per hour.

Job 700:

Finishing:

Direct material= $480

Direct labor= $270

Fabrication:

Direct materials= $105

Direct labor= $150

First, we need to calculate the direct labor hours involved in Finishing:

Direct labor hours= (270/30)= 9 hours

1) Total job cost= direct material + direct labor + allocated overhead

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Total job cost= (480 + 105) + (270 + 150) + (9*24 + 1.2*105)

Total job cost= 585 + 420 + 342

Total job cost= $1,347

2) Units= 10

Unitary cost= 1,347/10= $134.7