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A manufacturer has two production departments: Assembly; Finishing. In Assembly, the budget MOH rate is $10...

A manufacturer has two production departments: Assembly; Finishing. In Assembly, the budget MOH rate is $10 per machine hour. In Finishing, the budget rate is 150% of direct labor dollars. Company records indicate the following information about Job A:

Assembly Finishing

20,000 4,000 DM (in $)

5,000 15,000 DL (in $)

400 100 machine hours

Calculate the total cost of Job A according to GAAP.

a. 44,000

b. 48,000

c. 49,000

d. 70,500

e. 79,000

Solutions

Expert Solution

Assembly Finishing Total
Direct Materials $         20,000 $                4,000 $          24,000
Direct Labor $            5,000 $              15,000 $          20,000
Overhead $            4,000 $              22,500 $          26,500
(400*$10) ($1500*150%)
$         29,000 $              41,500 $          70,500
Total Cost to Job A = $70500
Correct Aanswer = d.70500
NOTE: ASK YOUR QUERIES.PLEASE DO UPVOTE

ekkarill92 answered 2 years ago
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