Question

Weaver Company's predetermined overhead rate is $21.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour. The following information pertains to Job A-200:
Direct materials $230
Direct labor $150


Required:
1.
What is the total manufacturing cost assigned to Job A-200?



2.
If Job A-200 consists of 60 units, what is the average cost assigned to each unit included in the job?(Round your answer to 2 decimal places.)

Answer 1

Answer:

1. $590

2. $9.83

Explanation:

1.

Total Number of Direct Labor Hours:

= Total Labor Cost ÷ Labor Rate Per Hour

= 150 ÷ 15

= 10 Hours

Total Overheads:

= Total Number of Direct Labor Hours*Predetermined Overhead Rate

= 10 × 21

= 210

Total Manufacturing Cost = 230 + 150 + 210

                                           = $590

2.

Average Cost:

= Total Manufacturing Cost ÷ Number of Units

= 590 ÷ 60

= $9.83