In: Accounting
Detmer Liebold uses a job-order costing system with a single predetermined overhead rate based on direct labor hours. The predetermined overhead rate is based on the following data: Total direct labor hours 70,000
Total fixed overhead cost 273,000
Variable manufacturing overhead per direct labor hour $6.00
Job 924 was recently completed with the following characteristics.
Number of units produced 50
Total direct labor hours 100 Direct materials $680
Direct labor cost $7,000
Complete the following table to calculate the unit product cost for Job 924:
Account Amount Calculations
Total fixed manufacturing overhead cost
+ Total variable manufacturing overhead cost
Total manufacturing overhead cost
/ Direct labor hours
Predetermined overhead rate
Direct materials
Direct labor
Manufacturing overhead applied
Total cost of Job 924
Total cost of Job 924 From calculation above
/ Number of units produced Unit product cost for Job 924
Account | Amount | Calculations | |||||
Total fixed manufacturing overhead cost | $273,000 | ||||||
+ | Total variable manufacturing overhead cost | $420,000 | $6.00 | × | 70000 | ||
Total manufacturing overhead cost | $693,000 | ||||||
/ | Direct labor hours | 70000 | |||||
Predetermined overhead rate | $9.90 | ||||||
Direct materials | $ 680 | ||||||
Direct labor | $ 7,000 | ||||||
Manufacturing overhead applied | $ 990 | $9.90 | × | 100 | |||
Total cost of Job 924 | $ 8,670 | ||||||
Total cost of Job 924 From calculation above | $ 8,670 | ||||||
/ |
Number of units produced Unit product cost for Job 924 |
50 | |||||
Unit product cost for Job 924 | $ 173.40 | ||||||
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