9 172 320 640 ring the year Job 550 was started and complete

9 1.72 3.20 6.40 ring the year, Job 550 was started and completed. The following information ls available with respect to this job: Direet labor cost Direct 370 15 the cost of Job 550. 5502 43

Solution

Given Direct labour hours 110000 DLH fixed overhead cost $308,000 fixed overhead cost per labour hour $308000/110000 $2.8 per DLH Variable overhead cost per labour hour $3.2 per DLH 1 Direct labour Hours a. Pre determined overhead rate $2.8+$3.2 $6 per DLH b. Total Manufacturing cost of Job 550 $187+$370+$6*15 $647 c. Selling price $563+$563*200% $563+$1126 $1,689 Given Direct Machine hours 55000 MH fixed overhead cost $308,000 fixed overhead cost per labour hour $308000/55000 $5.6 per MH Variable overhead cost per Machine hour $6.4 per MH 2 Machine- Hours a. Pre determined overhead rate $5.6+$6.4 $12 per MH b. Total Manufacturing cost of Job 550 $187+$370+$12*5 $617 c. Selling price $617+$617*200% $617+$1234 $1,851