Braverman Company has two manufacturing departments-Finishing and Fabrication. T

Question

Braverman Company has two manufacturing departments-Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $17.00 per direct labor-hour and 120% of direct materials cost, respectively. The company's direct labor wage rate is $24.00 per hour. The following information pertains to Job 700: Fabrication $ 75 $ 216 Finishing Direct materials Direct labor 312 Required 1. What is the total manufacturing cost assigned to Job 700? 2. If Job 700 consists of 10 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.) 1. Total manufacturing cost 2. Unit product cost per unit

Explanation / Answer

Answer 1.

Finishing Department:

Direct Materials Cost = $450
Direct Labor Cost = $312

Number of direct-labor hours = Direct Labor Cost / Direct-labor wage rate
Number of direct-labor hours = $312 / $24
Number of direct-labor hours = 13

Manufacturing Overhead Cost = $17.00 * Number of direct-labor hours
Manufacturing Overhead Cost = $17.00 * 13
Manufacturing Overhead Cost = $221

Manufacturing Cost = Direct Materials Cost + Direct Labor Cost + Manufacturing Overhead Cost
Manufacturing Cost = $450 + $312 + $221
Manufacturing Cost = $983

Fabrication Department:

Direct Materials Cost = $75
Direct Labor Cost = $216

Manufacturing Overhead Cost = 120% * Direct Materials Cost
Manufacturing Overhead Cost = 120% * $75
Manufacturing Overhead Cost = $90

Manufacturing Cost = Direct Materials Cost + Direct Labor Cost + Manufacturing Overhead Cost
Manufacturing Cost = $75 + $216 + $90
Manufacturing Cost = $381

Total Manufacturing Cost = Manufacturing Cost, Finishing Department + Manufacturing Cost, Furnishing Department
Total Manufacturing Cost = $983 + $381
Total Manufacturing Cost = $1,364

Answer 2.

Total Manufacturing Cost = $1,364
Number of units produced = 10

Unit Product Cost = Total Manufacturing Cost / Number of units produced
Unit Product Cost = $1,364 / 10
Unit Product Cost = $136.40

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.