Weaver Company’s predetermined overhead rate is $20.00 per direct labour-hour, and its direct labour wage rate...

Weaver Company’s predetermined overhead rate is $20.00 per direct labour-hour, and its direct labour wage rate is $15.00 per hour. The following information pertains to Job A-200:


Direct materials	$520
Direct labour	$390

Required:

1.	What is the total manufacturing cost assigned to Job A-200?

2.	If Job A-200 consists of 55 units, what is the average cost assigned to each unit included in the job?

Expert Solution

1)
	Manufacturing cost assigned to Job A-200			$ 1,430

Working:
a.	Direct Materials			$ 520
	Direct Labor			$ 390
	Manufacturing overhead			$ 520

	Manufacturing costs			$ 1,430

b.	Direct Labor hours	=	Direct Labor costs/ Direct Labor wage rate
		=	$ 390	/	$ 15.00
		=	26

c.	Manufacturing overhead	=	Direct Labor hours* Overhead recovery rate
		=	26	x	$ 20
		=	$ 520

2)	Average cost each unit		$ 26.00

Working:
	Average cost each unit	=	Total Manufacturing costs/Total Units
		=	$ 1,430	/	55
		=	$ 26.00

ekkarill92 answered 3 years ago

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