Computing Job Costs (LO – 4-3) Weaver Company’s predetermined overhead rate is $

Question

Computing Job Costs (LO – 4-3)
Weaver Company’s predetermined overhead rate is $18.00 per direct labor-hour and its direct labor wage rate is $12.00 per hour. The following information pertains to Job A-200.

Direct Materials ………………………………. $200
Direct Labor …………………………………….. $120

Required:

What is the total manufacturing cost assigned to Job a-200?

If Job A-200 consists of 50 units, what is the average cost assigned to each unit included in the job?

Direct Materials ………………………………. $200
Direct Labor …………………………………….. $120

Explanation / Answer

Total manufacturing cost assigned to Job a-200

Direct materials $200

Direct Labour $120

Overheads $180

Total manufacturing costs $500

Overheads = $18 per direct labour hours

Labour hours = Direct labour costs / wage rate = 120 / 12 = 10

so, overheads = 18* 10 = $180

If Job A-200 consists of 50 units, average cost assigned to each unit included in the job

$500 per unit

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