Braverman Company has two manufacturing departments-Finishing and Fabrication. T

Question

Braverman Company has two manufacturing departments-Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $24.00 per direct labor-hour and 120% of dret materials cost respectively.The company direct labor wage rate is $30.00 per hour. The following information pertains to Job 700: Finishing Fabrication Direct materials Direct labor 480 270 s 105 $150 ok ter nces Required: 1. What is the total manufacturing cost assigned to Job 700? 2. If Job 700 consists of 10 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

Explanation / Answer

Finished Department Fabrication Department Direct material $480 $105 Direct labor $270 $150 Overheads $216 $126 Manufacturing cost $966 $ 381 1 Total Manufacturing cost to Job 700 = $966 + $381 = $ 1,347 2 Number of units in Job 700 = 10 units Unit product cost ($1,347 / 10 units) = $       134.70 Workings: Computation of Overheads Finished Department (i) Direct labor = $ 270 (ii) Cost per direct labour hour = $ 30 (iii) Direct labor hours[(i)/(ii)] = $ 9 (iv) Predetermined overhead rate = $ 24 Overheads [(iii) X (iv)] = $ 216 Fabrication Department Direct material = $ 105 Overheads [Direct materials x 120%] = $ 126

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