$ 7.00 per direct labor-hour Labor-related Machine-related Machine setups Produc
ID: 2552724 • Letter: #
Question
$ 7.00 per direct labor-hour Labor-related Machine-related Machine setups Production orders Shipments General factory $ 3.00 per machine-hour 42.00 per setup $164.00 per order S 116.00 per shipment $ 3.00 per direct labor-hour Cost and activity data have been supplied for the following products: J78 B52 Direct materials cost per unit Direct labor cost per unit Number of units produced per year $6.4 $31.00 $35 $6.00 3,947 100 Total Expected Activity J78 1,000 3,200 B52 40 30 Direct labor-hours Machine-hours Machine setups Production orders Shipments 5 10Explanation / Answer
SOLUTION
Unit product cost of J78 = $15.42
Direct Material cost-
Total direct materials cost = Cost per unit * No. of units
= $6.40 * 3,947 = $25,260.80
Direct Labor cost-
Total direct labor cost = Cost per unit * No. of units
= $3.50 * 3,947 = $13,814.50
Total overhead cost-
Total cost = $25,260.80 + $13,814.50 + $21,790 = $60,865.30
Unit product cost = $60,865.30 / 3,947 units = $15.42
Cost Expected activity (A) Activity rate (B) Total cost ($) (A*B) Labor-related cost 1,000 labor hours $7 7,000 Machine related cost 3,200 machine hours $3 9,600 Machine set ups 5 set ups $42 210 Production orders 5 orders $164 820 Shipments 10 shipments $116 1,160 General factory 1,000 labor hours $3 3,000 Total overhead costs 21,790Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.