Question

Help Save & Exit s Check my w Braverman Company has two manufacturing departments --Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $23.00 per direct labor-hour and 110% of direct materials cost, respectively. The company's direct labor wage rate is $29.00 per hour. The following information pertains to Job 700: Direct materials Direct labor Finishing $ 475 $ 232 Fabrication $ 100 $ 116 Required: 1. What is the total manufacturing cost assigned to Job 700? 2. If Job 700 consists of 5 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 < Prey 3 of 4 !!! Next > SCTE STOL 15 6 A P

Answer 1

1. Total manufacturing cost = Direct material cost + Direct labor + manufacturing overhead

Calculating Manufacturing overhead :

For finishing- $23 per Direct labor hour (given in question)

So, for calculating overhead costs for finishing, we need to calculate the Direct labor hour.

The company's wage rate is given $29 per hour and the direct labour cost for finishing is $232. So, number of direct labor hour for finishing is = $232/ $29 = 8 hours.

Now, the finishing overhead = $23 ×8 = $184

For Fabrication overhead = 110% of direct material cost

Direct material cost for fabrication = $100

So, fabrication overhead = $110

Total overhead cost = finishing overhead costs + fabrication overhead costs

= $184 + $110 = $294

Total direct materials cost = finishing material cost + fabrication overhead costs

= $475 + $100 = $575

Total direct labor cost = finishing labor cost + fabrication labor cost

= $232 + $116 = $348

Now, total manufacturing cost assigned to job 700 = total overhead cost + total material cost + total labor cost

= $294 + $575 + $348 = $1217

2. If job 700 has 5 units, then this means total cost of 5 units is $1217. So, to calculate unit product cost = $1217 / 5 = $ 243.4

Unit product cost= $243.4