Hi sir/ma'am, I'm not too sure on how to calculate this particular problem.. May I humbly ask you to help me with this question please? Thank you for your time! I appreciate it! :)
1.
Direct labor cost of Assembly department = $250
Direct labor cost of Testing & packing department = $25
Direct labor rate = $25 per hour
Direct labor hours used in Assembly department = Direct labor cost of Assembly department / Direct labor rate
= 250/25
= 10
Direct labor hours used in Assembly department = Direct labor cost of Testing & packing department / Direct labor rate
= 25/25
= 1
Predetermined overhead rate in Assembly department = $23 per direct labor hour
Overhead applied in Assembly department = Direct labor hours used in Assembly department x Predetermined overhead rate in Assembly department
= 10 x 23
= $230
Predetermined overhead rate in Testing & packing department = $19 per direct labor hour
Overhead applied in Assembly department = Direct labor hours used in Testing & packing department x Predetermined overhead rate in Testing & packing department
= 1 x 19
= $19
Assembly Department | Testing & packing Department | Total | |
Direct materials | 395 | 47 | 442 |
Direct labor | 250 | 25 | 275 |
Overhead applied | 230 | 19 | 249 |
Total Manufacturing Cost | $875 | $91 | $966 |
2.
Unit product cost = Total manufacturing cost / Number of units
= 966/10
= $96.6
1. | Total manufacturing cost | $ | 966 |
2. | Unit product cost | $96.6 | per unit |
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Hi sir/ma'am, I'm not too sure on how to calculate this particular problem.. May I humbly...
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