Exercise 43 Computing Job Costs LO43 Weaver Companys predete

Exercise 4-3 Computing Job Costs [LO4-3] Weaver Company\'s predetermined overhead rate is $23.00 per direct labor-hour and its direct labor wage rate is $16.00 per hour. The following information pertains to Job A-200: Direct materials Direct labor $250 $240 Required: 1. What is the total manufacturing cost assigned to Job A-200? Total manufacturing cost 2. If Job A-200 consists of 80 units, what is the average cost assigned to each unit included in the job? (Round your answer to 2 decimal places.) Average cost per unit

Solution

Direct labor hours=($240/16)=15 hours

Hence total overhead=(15 hours*$23)=$345

a.Total manufacturing cost=Direct materials+Direct labor+Total overhead

=(250+240+345)=$835.

b.Average cost=(835/80)=$10.44(Approx).