13. TEB estimated the following production cost for 1,000 units of product for j

Question

13. TEB estimated the following production cost for 1,000 units of product for job 588 during 2022:

Direct materials: 600 pounds at $5 per pound = $3,000

Direct labor: 2,000 hours at $10 per hour = $20,000

Manufacturing overhead ($65,000 estimated for the year divided by 6,000 estimated machine hours = $10.8333 per machine hour): 1,500 hours at $10.8333 per machine hour = $16,250

TEB, Inc. incurred the following actual costs for job 588: Direct materials: 620 pounds at $4.50 per pound = $2,790 Direct labor: 1,970 hours at $9.90 per hour = $19,503 Manufacturing overhead: $68,733 actual for the year; 6,300 actual machine hours; 1,475 actual machine hours used on job 588 Using actual costing, the total product cost for the following job rounded to the nearest dollar would be __________?

Explanation / Answer

Total Product Cost: Material (620 pounds @ 4.50) 2790 Labour (1970 hours @ 9.90) 19503 OH (68733/ 6300 MH *1475) 16092.25 Total Product Cost for Job 588 38385.25 Total Product cost for Job 588 is $ 38,385

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