Jasti Manufacturing Company produced 1,300 units of inventory in January 2011. I

Question

Jasti Manufacturing Company produced 1,300 units of inventory in January 2011. It expects to produce an additional 8,600 units during the remaining 11 months of the year. In other words, total production for 2011 is estimated to be 9,900 units. Direct materials and direct labor costs are $64 and $52 per unit, respectively. Jasti Company expects to incur the following manufacturing overhead costs during 2011.

Determine the cost of the 1,300 units of product made in January. (Round your answers to nearest dollar amount. Omit the "$" sign in your response.)

Jasti Manufacturing Company produced 1,300 units of inventory in January 2011. It expects to produce an additional 8,600 units during the remaining 11 months of the year. In other words, total production for 2011 is estimated to be 9,900 units. Direct materials and direct labor costs are $64 and $52 per unit, respectively. Jasti Company expects to incur the following manufacturing overhead costs during 2011.

Explanation / Answer

Hi,

Please find the answer as follows:

Part A:

Total Indirect Overhead Cost

Part B:

Indirect Overhead Cost = 60775

DM = 1300*64 = 83200

DL = 1300*52 = 67600

Total = 211575

Thanks.

Indirect Overhead Cost Total Cost Cost for 1300 Units Production supplies 4,200 552 Supervisor salary 1,80,625 23718 Depreciation on equipment 1,49,000 19566 Utilities 38,000 4990 Rental fee on manufacturing facilities 91,000 11949 Total Indirect Overhead Cost 4,62,825 60775

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