Question

JJ The Fasano Company uses a job-costing system at its over Delaware plant The plant has a machining department and a finishing department Fanano se nommal costing with two direct-cost categories direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining department with machine-hours as the allocation base and the finishing department with direct manufacturing labor costs as the location base) The 2017 budget for the plants as follows Click the icon to view the 2017 budget)

Answer 1

	Fasano's Job-Costing System
1
	Manufacturing overhear		Machining Department
			Finishing Department
					Machine Hours
			Direct labour hours
	Direct manufacturing labour cost			Direct labour hours
	Direct Material Cost
2			Machining Department		Finishing Department
	Budgeted manufacturing Overhead		9065000		7644000
	Cost Driver[Machine hours; Labour Hours]		185000		150000
	Recovery rate		49		50.96
3	Computation of Job Costing for Job-431
			Machining Department		Finishing Department		Total Cost
	Direct Material used		15500		2500		18000
	Direct manufacturing labour cost		800		1100		1900
	Manufacturing Overhead		7840		1528.8		9368.8
	[$49*160; $50.96*1100]
			24140		5128.8		29268.8
4	Cost per unit of Job-431
	Total Cost		29268.80
	Units produced		100.00
	Cost per unit		292.69