In: Finance
Job-Order Costing - Using the weighted procedure method setting rates, calculate the relative value and cost per procedure for the following lab procedures. Assume total lab cost of $2,500,000 and average hourly wage of $20. Round your answer to the nearest whole dollar.
Procedure |
Projected Volume |
Labor Minutes |
Supply Expense |
A |
5100 |
15 |
0.95 |
B |
5700 |
13 |
0.75 |
C |
4600 |
11 |
0.70 |
D |
6100 |
10 |
0.65 |
E |
4600 |
12 |
0.90 |
Procedure | Projected Volume | Labor Minutes | Supply Expense | Actual Production | Time required to Production in Units | Labour Cost | Lab Cost | Total Cost | Cost per procedure |
a | b | c | d=a X c | e= d/b | f= e X 20 per Hour | g= d * 2500000/20445 | h=g+f | '=h/d | |
A | 5100 | 15 | 0.95 | 4845 | 323 | 6,460.00 | 592,443.14 | 598,903.14 | 123.61 |
B | 5700 | 13 | 0.75 | 4275 | 329 | 6,576.92 | 522,743.95 | 529,320.87 | 123.82 |
C | 4600 | 11 | 0.7 | 3220 | 293 | 5,854.55 | 393,739.30 | 399,593.85 | 124.10 |
D | 6100 | 10 | 0.65 | 3965 | 397 | 7,930.00 | 484,837.37 | 492,767.37 | 124.28 |
E | 4600 | 12 | 0.9 | 4140 | 345 | 6,900.00 | 506,236.24 | 513,136.24 | 123.95 |
20445 | 33,721.47 | 2,500,000.00 | 2,533,721.47 |