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Exercise 10-12 (Part Level ) Venetian Company has two production departments Fabricating and assembling, At a department mana
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Answer #1

Total cost of Fabricating department = $145,500

Total fixed cost of Fabricating department = $51,000

Total variable cost of Fabricating department = Total cost of Fabricating department - Total fixed cost of Fabricating department

= 145,500-51,000

= $94,500

Variable cost per direct labor hour = Total variable cost / Number of direct labor hours

= 94,500/52,500

= $1.8 per direct labor hour

Total cost of Assembling department = $123,000

Total fixed cost of Assembling department = 39,000

Total variable cost of Assembling department = Total variable cost of Fabricating department - Total fixed cost of Assembling department

= 123,000-39,000

= $84,000

Variable cost per direct labor hour = Total variable cost / Number of direct labor hours

= 84,000/52,500

= $1.6 per direct labor hour

Fabricating department = 51,000 fixed cost = Total variable cost of $1.8 per direct labor hour

Assembling department = 39, 000 fixed cost = Total variable cost of $1.6 per direct labor hour

Kindly comment if you need further assistance. Thanks‼!

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