Question

Braverman Company has two manufacturing departments—Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $10.00 per direct labor-hour and 110% of direct materials cost, respectively. The company’s direct labor wage rate is $17.00 per hour. The following information pertains to Job 700:

	Finishing				Fabrication
Direct materials	$	415			$	40
Direct labor	$	102			$	34

Required:

1. What is the total manufacturing cost assigned to Job 700?

2. If Job 700 consists of 5 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)

	1. Total manufacturing cost 2. Unit product cost per unit

Answer 1

1 Calculation of total manufacturing cost assigned to Job 700 Direct Material Finishing Fabrication 415 40 Direct labor Finishing Fabrication 102 34 Overhead Costs Finishing Fabrication 60 (102/17) 10 44 (40*11096) 695 Total Manufacturing costs 2 Unit Product cost for the Job 139 (695/5)