Question

Exercise 2-5 (Algo) Computing Total Job Costs and Unit Product Costs Using Multiple Predetermined Overhead Rates (LO2-4] Braverman Company has two manufacturing departments—Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $20.00 per direct labor-hour and 120% of direct materials cost, respectively. The company's direct labor wage rate is $26.00 per hour. The following information pertains to Job 700: Direct materials Direct labor Finishing $460 $390 Fabrication $ 85 $286 Required: 1. What is the total manufacturing cost assigned to Job 700? 2. If Job 700 consists of 20 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.) 1. Total manufacturing cost 2. Unit product cost per unit

Answer 1

Direct labour hours:

Finishing:

= $390 / $26

= 15

Fabrication:

= $286 / $26

= 11

1.

Total manufacturing costs:

= $460 + $85 + $390 + $286 + ($20 X 15) + ($85 X 120%)

= $1,623

2.

Unit product cost:

= $1,623 / 20

= $81.15