Question

Weaver Company's predetermined overhead rate is $21.00 per direct labor-hour and its direct labor wage rate is $13.00 per hour. The following information pertains to Job A- 200: Direct materials Direct labor $250 $130 Required: 1. What is the total manufacturing cost assigned to Job A-200? Total manufacturing cost $ 385 2. If Job A-200 consists of 70 units, what is the average cost assigned to each unit included in the job? (Round your answer to 2 decimal places.) Average cost per unit

Answer 1

1. Direct Labor Hours = Direct Labor Cost / Direct labor Wage rate per hour

= $ 130 /$ 13 per hour

= 10 hours

Overhead = Direct Labor Hours * Predetermined overhead rate

= 10 hours * $ 21 per direct labor hour

= $ 210  

Total Manufacturing cost = Direct material+ Direct labor + Overhead

= 250+130+210

= $ 590

Answer: $ 590

2. Average Cost = Total Manufacturing cost / Total units

= $ 590/ 70 units

= $ 8.43 per unit

Answer: $ 8.43 per unit