In: Finance
BUDGETED AMOUNTS | ||
Department X | Department Y | |
Direct-Labor Hours | 18,000 | 16,500 |
Machine Hours | 51,000 | 40,000 |
Factory Overhead | $225,000 | $180,000 |
Actual Data for Job #10
Department X | Department Y | |
Direct materials | $10,000 | $16,000 |
Direct-labor cost | $11,000 | $14,000 |
Machine hours | 5,000 | 3,000 |
Direct-labor hours | 1,100 | 1,400 |
Required:
1. Compute the budgeted factory-overhead rate (i.e., the $ rate per activity base hour, etc.) for Department X.
2. Compute the budgeted factory-overhead rate (i.e., the $ rate per activity base hour, etc.) for Department Y.
3. What is the total overhead cost of Job #10?
4. What is the total cost of Job #10?
5. If Job 10 consists of 50 units of product, what is the unit cost of this job?
Department-X | Department-Y | ||
Factory overhead | $ 225,000 | $ 180,000 | |
Cost driver | Direct labor hours | Machine hours | |
Cost driver | 18000 | 40000 | |
Factory overhead rate= | =225000/18000 | =180000/40000 | |
Factory overhead rate= | $ 12.50 | $ 4.50 | |
Job 10 data | |||
Department-X | Department-Y | ||
Labor hours | 1100 | ||
Machine hours | 3000 | ||
Overhead recovery rate | $ 12.50 | $ 4.50 | |
Overhead cost | =1100*12.5 | =3000*4.5 | |
Overhead cost | $ 13,750.00 | $ 13,500.00 | |
Job 10 data | |||
Department-X | Department-Y | Total | |
Direct Material | $ 10,000 | $ 16,000 | $ 26,000 |
Direct labor | $ 11,000 | $ 14,000 | $ 25,000 |
Factory overheads | $ 13,750 | $ 13,500 | $ 27,250 |
Total cost | $ 78,250 | ||
Job 10 | |||
Total cost | $ 78,250 | ||
No of units | 50 | ||
Cost per unit | =78250/50 | ||
Cost per unit | $ 1,565 | ||