04051110394653846 1511272661308 Woodland industries manufactures and sells accum
ID: 2577597 • Letter: 0
Question
04051110394653846 1511272661308 Woodland industries manufactures and sells accumulate se ara ery rg with int ator con cerr r three manu acum overhead cost d vers act ties Assume hat the d ect abor rate is S2 per hour an at there were no e inventones. The tollowing information was available for 2016, based on an expected production level of 49,600 units for the year, which will require 229,000 direct labor hours windows Its job costing system was designed using an activity-based costing approach Direct maternals and direct labor costs are Driver Usod as 2016 S 61,830 3212,870 3,595,300 Number of parts used Number of parts used Direct labor hours 5 0 27 per part 1403 per part 15 70 per hour Cutting and lathe work Assombly and inspection The following production, costs, and actvies occurred during the month of July Costs 119,400 Used 3 220 1987 13,100 Required: a. Calculate the total manufacturing costs and the cost per unit of the windows produced during the month of July (using the activity based costing approach) (Round "Cost per unit decimal places) produced" to 2 Cost per unit produced cost and the cost per unit of the windows produced during the month or July (Hnt You ntl need to calcuiate the predetermined overhead appication rate using the total budgeted overhead costs for 2016) (Round "Cost per unit produced" to 2 decimal places.) ype here to searchExplanation / Answer
Answer a.
Direct Materials Cost = $119,400
Direct Labor Cost = Direct Labor hours * Direct Labor Rate
Direct Labor Cost = 13,100 * $20
Direct Labor Cost = $262,000
Manufacturing Overhead = Materials Handling + Cutting and lathe work + Assembly and Inspection
Manufacturing Overhead = 1,987 * $0.27 + 1,987 * $14.03 + 13,100 * $15.70
Manufacturing Overhead = $234,084.10
Total Manufacturing Costs = Direct Materials + Direct Labor + Manufacturing Overhead
Total Manufacturing Costs = $119,400 + $262,000 + $234,084.10
Total Manufacturing Costs = $615,484.10
Cost per unit = Total Manufacturing Costs / Number of units produced
Cost per unit = $615,484.10 / 3,220
Cost per unit = $191.14
Answer b.
Total Budgeted Overhead = Materials Handling + Cutting and lathe work + Assembly and Inspection
Total Budgeted Overhead = $61,830 + $3,212,870 + $3,595,300
Total Budgeted Overhead = $6,870,000
Total Budgeted Direct labor hours = 229,000
Predetermined Overhead Rate = Total Budgeted Overhead / Total Budgeted Direct labor hours
Predetermined Overhead Rate = $6,870,000 / 229,000
Predetermined Overhead Rate = $30
Direct Materials Cost = $119,400
Direct Labor Cost = Direct Labor hours * Direct Labor Rate
Direct Labor Cost = 13,100 * $20
Direct Labor Cost = $262,000
Manufacturing Overhead = Predetermined Overhead Rate * Number of Direct-labor hours
Manufacturing Overhead = $30 * 13,100
Manufacturing Overhead = $393,000
Total Manufacturing Costs = Direct Materials + Direct Labor + Manufacturing Overhead
Total Manufacturing Costs = $119,400 + $262,000 + $393,000
Total Manufacturing Costs = $774,400
Cost per unit = Total Manufacturing Costs / Number of units produced
Cost per unit = $774,400 / 3,220
Cost per unit = $240.50
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