Question

Braverman Company has two manufacturing departments—Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $18.00 per direct labor-hour and 110% of direct materials cost, respectively. The company’s direct labor wage rate is $16.00 per hour. The following information pertains to Job 700: Finishing Fabrication Direct materials $ 410 $ 60 Direct labor $ 128 $ 48 Required: 1. What is the total manufacturing cost assigned to Job 700? 2. If Job 700 consists of 15 units, what is the unit product cost for this job?

Answer 1

The total manufacturing cost assigned to Job 700 is $856, which includes direct materials, direct labor, and overhead expenses. Dividing this total cost by the number of units (15) results in a unit product cost of $57.07 per unit.

Step-by-step explanation:

First, we'll calculate the overhead costs for both the Finishing and Fabrication departments using the predetermined overhead rates provided.

Finishing overhead = $18.00 per direct labor-hour

Fabrication overhead = 110% of direct materials cost

Direct labor hours for Finishing = $128/$16 per hour = 8 hours
Direct labor hours for Fabrication = $48/$16 per hour = 3 hours

Finishing department overhead = 8 hours * $18/hour = $144
Fabrication department overhead = 110% of $60 = $66

Total Manufacturing Cost for Job 700

Total direct materials = $410 (Finishing) + $60 (Fabrication) = $470
Total direct labor = $128 (Finishing) + $48 (Fabrication) = $176
Total overhead = $144 (Finishing) + $66 (Fabrication) = $210

Total manufacturing cost = Total direct materials + Total direct labor + Total overhead
Total manufacturing cost = $470 + $176 + $210 = $856

Unit Product Cost for Job 700

Unit product cost = Total manufacturing cost / Number of units
Unit product cost = $856 / 15 units = $57.07 per unit (rounded to two decimal places)