Answer:
Explanation:
a.
Direct materials 101,500
Direct labour (13,600 * 13) 176, 800
Materials handling (508 * 0.28) 142.24
Cutting and lathe work (508 * 12.32) 6258.56
Assembly and inspection (13,600 * 17.5) 238,000
Total manufacturing cost 522,700.8
Cost per unit produced = 522,700.8 / 3,050 =
= 171.377 per unit.
b.
Predetermined overhead rate = Estimated overhead costs / Estimated Direct labour hours
(61,600 + 2,710,400 + 3,850,000) / 220,000
= 30.1 per direct labour hour
Direct materials 101,500
Direct labour (13,600 * 13) 176,800
Manufacturing overhead (13,600 * 30.1) 409,360
Total manufacturing cost 687,660
Cost per unit produced = 687,660/ 3,050
= 225.46 per unit.
