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Job-Order Costing - Using the weighted procedure method setting rates, calculate the relative value and cost...

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

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Expert Solution

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

jeff jeffy answered 3 years ago
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