Answer:
Part 1. Computation of the total cost of Job 9-601
Total cost= Unit cost of Job 9-601 × Units Produced
= $30,240 × 1,000
= $30,240,000
Part 2. Computation of the per-unit manufacturing cost for Job 9-601
Direct materials $12,000
Direct labor cost:
Department A (450 hours @ $18) $8,100
Department B (120 hours @ $18) $2,160
Prime Cost $22,260
Manufacturing Overheads:
Department A (450 hours @ $14) $6,300
Department B (120 hours @ $14) $1,680
Unit Manufacturing Cost $30,240
Part 3. Computation of the total cost of Job 9-601
Total cost= Unit cost of Job 9-601 × Units Produced
= $24,930 × 1,000
= $24,930,000
Part 4. Computation the per-unit manufacturing cost for Job 9-601.
Direct materials $12,000
Direct labor cost:
Department A (450 hours @ $18) $8,100
Department B (120 hours @ $18) $2,160
Prime Cost $22,260
Manufacturing Overheads:
Department A (450 hours @ $3) $1,350
Department B (120 hours @ $11) $1,320
Unit Manufacturing Cost $24,930
Explanation:
Part 1. Computation of the total cost of Job 9-601
Total cost= Unit cost of Job 9-601 × Units Produced
Part 2. Computation of the per-unit manufacturing cost for Job 9-601
Addition of all Manufacturing Costs ( Direct and Indirect) gives the unit manufacturing cost.
Note: Overhead is applied using a plantwide overhead rate of $14.00 per direct labor hour for Both Department A and Department B
Part 3. Computation of the total cost of Job 9-601
Total cost= Unit cost of Job 9-601 × Units Produced
Part 4. Computation the per-unit manufacturing cost for Job 9-601.
Addition of all Manufacturing Costs ( Direct and Indirect) gives the unit manufacturing cost.
Note: Overhead is applied as follows: In Department A, overhead is applied at the rate of $3 per direct labor hour. In Department B, overhead is applied at the rate of $11.00 per machine hour.
