The Makers Co. has two producing departments: assembly and finishing. The company has been using a...
|
|
Assembly |
Finishing |
Total |
|
|
Manufacturing Overhead |
$200,000 |
$100,000 |
$300,000 |
|
Direct labor hours |
40,000 |
35,000 |
75,000 |
|
Machine hours |
5,000 |
16,000 |
21,000 |
|
Makers started and completed Job 1512 during the year. The job-order cost sheet indicated the following: |
|
Materials Requisitioned |
$18,000 |
|
Direct labor cost |
16,000 |
|
Direct labor hours: |
|
|
Assembly |
1,700 Hours |
|
Finishing |
1,300 Hours |
|
Machine Hours |
|
|
Assembly |
1,000 Hours |
|
Finishing |
700 Hours |
|
A total of 2,000 units were produced on Job 1512. |
Required:
|
1. |
Assume that Makers uses a plant wide predetermined overhead based on direct labor hours. Calculate the total cost and the unit cost for each of the 2,000 units produced by Job 1512. |
|
2. |
Assume that Makers uses separate departmental overhead rates based upon direct labor hours for assembly and machine hours for finishing. Calculate the total cost and the unit cost for each of the 2,000 units produced by Job 1512. |
Homework Answers
| Part-A |
| Plantwide Overhead Rate= Estimated Overhead/ Total Direct Labour Hour |
| =$300000/75000=$4 per Hour |
| Computaiton of Total Cost & Unit cost | |
| Particular | Amount |
| Material Cost | $18,000.00 |
| Direct Labour Cost | $16,000.00 |
| Manufacturing Overhead | |
| Assembly ( 1700X$4) | $6,800.00 |
| Finishing ( 1300X$4) | $5,200.00 |
| Total Cost | $46,000.00 |
| Total Unit in Job 512 | 2000 |
| Cost per Unit (46000/2000) | $23.00 |
| Part-b |
| Overhead Rate for Assembly Department = Estimated Overhead/ Total Direct Labour Hour |
| =200000/40000=$5per hour |
| . Overhead Rate for Finishing Department = Estimated Overhead/ Total Machine Hour |
| =100000/16000=$6.25 |
| Computaiton of Total Cost & Unit cost | |
| Particular | Amount |
| Material Cost | $18,000.00 |
| Direct Labour Cost | $16,000.00 |
| Manufacturing Overhead | |
| Assembly ( 1700X$5) | $8,500.00 |
| Finishing ( 700X$6.25) | $4,375.00 |
| Total Cost | $46,875.00 |
| Total Unit in Job 512 | 2000 |
| Cost per Unit (46875/2000) | $23.44 |
| Let me know if any doubt Kindly mark with positive rating it would help me lot. Thanks in advance. |
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