Question

Weaver Company's predetermined overhead rate is $21.00 per direct labor-hour and its direct labor wage rate is $13.00 per hour. The following information pertains to Job A-200: Direct materials Direct labor $230 $195 Required: 1. What is the total manufacturing cost assigned to Job A-200? Total manufacturing cost 2. If Job A-200 consists of 40 units, what is the average cost assigned to each unit included in the job? (Round your answer to 2 decimal places.) Average cost per unit

Answer 1

Please find below table useful to compute desired results: -

B А i Particulars: - 2 Overhead rate 3 Direct Labor wage rate 4 Direct Materials 5 Direct Labor 6 Total Manufacturing Cost Assigned 7 Units 8 Average Cost 230 195 =B5/B3*B2+B4+B5 40 =B6/B7 per unit

End results would be as follows: -

D E F A B C 1 Particulars: - 2 Overhead rate 21.00 3 Direct Labor wage rate | 13.00 4 Direct Materials 230.00 5 Direct Labor 195.00 6 Total Manufacturing Cost Assigned | 740.00 7 Units 40.00 8 Average Cost 18.50 per unit 10 Total Manufacturing Costs = 11 Cost Per unit = Direct Material + Direct Labor + Overhead Total manufacturing costs / Number of units