Question

At the end of April, Cavy Company had completed Job 766 and 765. According to the individual job cost sheets the information is as follows: Job Direct Materials Direct Labor Machine Hours Job 765 $6,440 $1,932 23 Job 766 10,773 3,402 63 Job 765 consisted of 138 units, and Job 766 consisted of 189 units. Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $134 per hour. a. Determine the balance on the job cost sheets for each job. Job 765 $ Job 766 $ b. Determine the cost per unit at the end of April. Round to the nearest cent. Job 765 $ Job 766 $

Answer 1

Answer:

Total Manufacturing Cost of Job 765     $11454

Total Manufacturing Cost of Job 766  $ 22617

Cost per unit Job 765 $ 83            

Cost per unit Job 766 $  119.67

Explanation:

We calculate the FOH based on Machine hours. Then we find the total manufacturing costs and per unit cost as follows.

Cavy Company

Job       Direct Materials       Direct Labor        Machine Hours

Job 765           $6,440             $1,932                     23

Job 766            10,773                3,402                    63

Job 765       138 units

Job 766       189 units

Predetermined overhead rate = $134 per hour

Job 765  Overhead = Rate * No of Hours= $ 134 * 23= $ 3082

Job 766  Overhead = Rate * No of Hours= $ 134 * 63= $ 8442

Total Manufacturing Cost of Job 765= D. Materials + D. Labor+ FOH

                                                 = $6,440 + $1,932+$ 3082=  $11454

Total Manufacturing Cost of Job 766= D. Materials + D. Labor+ FOH

                                       =10,773 + 3,402 + $ 8442= $ 22617

Cost per unit                                 Job 765 $              Job 766 $

=Total Mfg Cost/ No of Units     $11454/138               $ 22617/189

                                                      =   $ 83                      =$ 119.67