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 $18.00 per direct labor-hour and 110% of direct materials cost, respectively. The company's direct labor wage rate is $16.00 per hour. The following information pertains to Job 700: Direct materials Direct labor Finishi $410 $128 Fabrication S 60 S 48 Required: 1. What is the total manufacturing cost assigned to Job 700? 2. If Job 700 consists of 15 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

1) total manufacturing cost assigned to Job 700

For Finishing, overhead is allocated on the basis of direct labour hours.

Direct labour hours of Finishing for Job 700 = Direct labour cost / direct labour wage rate

= 128 / 16

= 8 hours

Manufacturing cost for Finishing = 18 * 8 = $144

The overhead allocation base for Fabrication is 110% of direct material cost,

Manufacturing cost for Fabrication = 60*110% = $66

Total manufacturing cost = 144+66 = $210

2)

Total cost of the product = finishing + fabrication cost

= 682+174

= $856

Per unit product cost = 856 / 15

= $57.07

Finishing Fabrication Direct materials $410 $60 Direct labor $128 $48 Manufacturing cost $144 $66 Total cost $682 $174

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