Answer:
1) the total manufacturing cost is=$510
2) cost per unit=$12,75unit
Explanation:
The following information pertains to Job A-500:
Direct materials $ 231
Direct labor $ 153
We need to calculate the amount of overhead for Job a-500.
We know that the overhead is determined by labor hours. The hour price is $17.
The number of hours: $153/17=9hours
Overhead= 9hours*$14=$126
1) the total manufacturing cost is=231+153+126=$510
2) cost per unit= $510/40units=$12,75unit
1. What is the total manufacturing cost assigned to Job A-500?
First, calculate the number of hours.
= Direct labor/Wage rate
= $153/$17
= 9hours
Also,
Overhead
= Number of hours * Predetermined overhead rate
= 9hours * $14
= $126
Hence;
Total manufacturing cost
= Direct materials + Direct labor + Overhead
= 231 +153 + 126
=$510
2. If Job A-500 consists of 40 units, what is the unit product cost for this job.
Cost per unit = $510/40 units
= $12.75units
