Question

List Paragraph The Kelber Company has two producing departments: assembly and finishing. The company has been using a plantwide predetermined overhead rate based on direct labor hours. The following estimates were made for the current year: 1. Assembly Finishing Total Manufacturing Overhead $200,000 $100,000 $300,000 Direct labor hours 40,000 75,000 35,000 Machine hours 5,000 21,000 16,000 Kelber 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 1,000 Hours Assembly. Finishing 700 Hours A total of 2,000 units were produced on Job 1512 Required 1. Assume that Kelber uses a plantwide predetermined overhead based on direct labor hours Calculate the total cost and the unit cost for each of the 2,000 units praduced by [ob 1512 t Layout View Pages Sec 1 1 of 1 Words: 18 of 176 MacBook Pro

Answer 1

Answer with working is given below

Assembly Finished $200,000 $100,000 $300,000 $40,000 Total Manufacturing Overhead Direct Labor hours $75,000 $35,000 Predetermined Overhead rate $300,000 75,000 Total Overheads $4.00 Direct Labor hours Computation of Unit Cost Job 1512 1 Direct Material Direct Labor Overhead Applied Assembly Dept- (1,700* $4) Finishing Dept-(1,300* $4) Total Cost Total Units Unit Cost $18,000 $16,000 $6,800 $5,200 $46,000 2,000 $23.00 Predetermined Overhead rate- Department wise 2 Assembly Finished $200,000 $100,000 40,000 Manufacturing Overhead Direct Labor hours Machine hours Direct Labor hour rate Machine hour rate 16,000 $5.00 $6.25 Computation of Unit Cost Job 1512 Direct Material Direct Labor Overhead Applied Assembly Dept-(1,700* $5) Finishing Dept -( 700* $ 6.25) Total Cost $18,000 $16,000 $8,500 $4,375 $46,875 2,000 $23.44 Total Units Unit Cost