Tandoi Furniture started and finished Job 310 during April.The company's records show that the following direct materials were r

Question

4 years ago

15

Tandoi Furniture started and finished Job 310 during April.The company's records show that the following direct materials were r

equisitioned for Job 310:Direct Materials for Job 310:Lumber: 50 units at $5 per unitPadding: 11 yards at $13 per yardUpholstery fabric: 28 yards at $30 per yardLabor time records show the following employees (direct labor) worked on Job 310:Labor Time Records for Job 310:Jeff Paradise: 11 hours at $9 per hourJohn Maddock: 12 hours at $18 per hourTandoi allocates manufacturing overhead at a rate of $14 per direct labor hour.Requirements:1. Compute the total amount of direct materials, direct labor, and manufacturing overhead that should be shown on Job 310's job cost record2. Job 310 consists of six recliners. If each recliner sells for $725, what is the gross profit per recliner?

Business

1 answer:

mihalych1998 [28] · Answer 1 · 2021-12-15T01:09:41+03:00

Answer:

Total Direct Materials Cost $ 1,233

Total Direct Labour Cost $ 315

Total Manufacturing Overhead $ 322

Profit per recliner $ 415

Explanation:

Computation of Direct Materials Cost

Lumber 50 units @ $ 5 per unit $ 250

Padding 11 yards @ $ 13 per yard $ 143

Upholstery fabric 28 yards @ $ 30 per yard $ 840

Total Material Cost $ 1,233

Computation of Direct Labour Cost

Jeff Paradise 11 hours @ $ 9 per hour $ 99

John Maddock 12 hours @ $ 18 per hour $ 216

Total Labor Costs $ 315

Computation of Manufacturing Overhead

Total number of hours 23 hours

Overhead rate $ 14 per direct labour hour

$ 23 per hour * $ 14 per hour $ 322

Total Manufacturing Costs $ 1,860

Costs per recliner $ 1,860/6 $ 310

Sales price $ 725

Profit per recliner $ 415