Question

Shepherds company. Manufactures two types of shoes sneakers and boots .Each sneakers requires 2 direct labor hours and boots require 1.5 direct labor hours.The overhead rate. Per direct hour is $2 .Direct materials for sneakers and boots is $15-$20 .Respectivelay.The total unit cost for each product.

Answer 1

The question is incomplete. The complete question is :

Shepherd Company manufactures two types of shoes - sneakers and boots. Each sneaker requires 2 direct labor hours and boots require 1.5 direct labor hours. The overhead rate per direct labor hour is $2. Direct materials for sneakers and boots is $15 and $20, respectively. Direct labor for sneakers and boots is $5 and $7, respectively. The total unit cost for each product is:

Solution :

The total unit cost for a product = direct materials cost + direct labor cost + overhead cost

The total unit cost for the sneakers and the boots are :

Particulars Sneakers Boots

Direct material cost $15 $20

Direct labor cost $5 $7

Overhead cost $4 $3

Total unit cost $24 $30

The overhead rate per direct labor hour is $2

So, the overhead cost per unit of :

Sneakers : 2 hours at the rate $2 per hour = $4

Boots : 1.5 hours at the rate of $2 per hour = $3

Hence the answer is : total unit cost = Sneakers: $24; Boots: $30