Question

TEB budgeted the following production cost for 1,000 units of product for job 588 during 20XX: Direct Materials (DM) 400 pounds at $5 per pound $ 2,000 Direct Labor (DL) 1,500 hours at $15 per hour 22,500 Manufacturing Overhead (MO) 1,500 Machine hours at $10* per machine hour 15,000 Total 39,500 *$60,000 estimated overhead for the year divided by 6,000 estimated machine hours for the year = $10 estimated overhead per machine hour. TEB, Inc. incurred the following actual costs for job 588: Direct Materials (DM) 420 pounds at $5.50 per pound $ 2,310 Direct Labor (DL) 1,540 hours at $14.50 per hour 22,330 Manufacturing Overhead (MO) $62,000 actual overhead for the year; 5,900 actual machine hours; 1,600 actual machine hours used on job 588 ? Compute the total cost (DM, DL, and MO) of job 588 using standard costing Using standard costing, what is the total job cost?

Answer 1

Total Product cost for Job 588 is $ 41,453

Step-by-step explanation:

Direct Materials (DM) = 420 pounds at $5.50 per pound = $ 2,310

Direct Labor (DL) = 1,540 hours at $14.50 per hour = $22,330

Manufacturing Overhead (MO) $62,000

actual overhead for the year; 5,900

actual machine hours; 1,600 actual machine hours used on job

Total Product Cost:

Overhead = ($62,000 ÷ 5,900) × 1600 = $16,813.56

Total Product Cost for Job 588 = $2,310 + $22,330 + $16,813.56

= $ 41,453.56

Total Product cost for Job 588 is $ 41,453