Question

direct labor and unit product cost.

Check my work High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor hours. At the beginning of the year, the company provided the following estimates: Direct labor-hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Morang Painting 12,000 60,000 70,000 8,000 $ 497,000 $ 615,000 1.50 - $ 2.00 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Department Molding Painting Direct labor-hours Machine-hours Direct materials Direct labor cost 110 $ 770 $ 525 20 $1,332 $1.470 Required: 1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department. 2. Compute the total overhead cost applied to Job 205. 3-a. What would be the total manufacturing cost recorded for Job 205? 3-b. If the job contained 50 units, what would be the unit product cost? Complete this question by entering your answers in the tabs below. < Prev 3 of 3 !!! Next >

Answer 1

Answer T outation of predeterminel_overbead_ Rates used 19 Molling qab Painting Department F I predetermined Overhead Rates is the overhead cost per unity hould etc. It is calculated by total cost cie variable + fixed) I divided by number of hours, units, etc. molding Dept Basel on machine Thours where Painting department bqrel on direct labour hours. sfor, melding $ C497600 + (79000 Machine hours x 1.50)] = 8.60 per 70000 Machine Hours._ Machine houv. Dejarlament = Painting Depavlinent $ C61 5000 + (60000 tirect labour hoyrs X2] = 12.25 Der 60000 direct labour hoyer _ lisest Gbout how 2. Total Overhead cost applies to Job 205 946 Total Overhead Cost applies to Job zo5 is as follows: Molding Department (110 Machine Hours x $8160) 1023 اوعطورهم وواوو & 1975 1 °(84 direct labour hoyc x $ 12.25) Total Overhead Cost Job 18:9. || Total Megyfy clynas cost, koor I Total manufacturing Cost is the total cost associated # with the addyck_upto the manufaclyyling over heel It is addition of direct materjals plys direct lebours plus Mo Loverhead lect material t i totalmenytycying ..cost direct Laboyy & Manufacturi o verhed

Schedule of Total Manufactur/09 det L Paub iuleur t Department molding lunting Direct materjal 170 1332 Direct laboyu 525 1 470 Magufacturing ovexheph | 946 | 1024 Total cost sa 2241 1 3831 yotu Coster Deparlment. 2102 1995. 1975 6072 a-b. If job contgios 50 units, the unit product cost is: unit product cost is the unit product cost per unit derived by total product cost divitet by number of units produced - .. unit product : Total cost a cost Number of Units Produced t $ 6072. 50 units Logit Polyck costs ? $ 12/44: per ugiba.