Braverman Company has two manufacturing departments—Finishing and Fabrication. T
ID: 2565705 • Letter: B
Question
Braverman Company has two manufacturing departments—Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $19.00 per direct labor-hour and 110% of direct materials cost, respectively. The company’s direct labor wage rate is $25.00 per hour. The following information pertains to Job 700: Finishing Fabrication Direct materials $ 455 $ 80 Direct labor $ 350 $ 250 Required: 1. What is the total manufacturing cost assigned to Job 700? 2. If Job 700 consists of 15 units, what is the unit product cost for this job? I got 1,755 for total manufacturing cost and that is wrong. I got 117.00 for unit product cost and that is wrong.
Explanation / Answer
Particulars Finishing Department Fabrication department Total Direct material 455 80 Direct labor 350 250 Overheads 266 88 Total Manufacturing cost 1071 418 1489 No.of Units in Job 700 15 Unit product cost 99.27 Working Note: Overhead caluculation Finishing Department Direct labor 350 Labor wage rate 25 Direct Labor hours (350/25) 14 Overhead rate per direct labour hour 19 Overheads (14x19) 266 Fabrication department Direct materials 80 Overheads (80 x110%) 88