Question

Braverman Company has two manufacturing departments—Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $17.00 per direct labor-hour and 120% of direct materials cost, respectively. The company’s direct labor wage rate is $24.00 per hour. The following information pertains to Job 700:

	Finishing				Fabrication
Direct materials	$	450			$	75
Direct labor	$	312			$	216

Required:

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

2. If Job 700 consists of 10 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)

Answer 1

Ans. 1		Finishing	Fabrication	Job 700 (Total)
	Direct materials	$450.00	$75.00
	Direct labor cost	$312.00	$216.00
	Overhead applied	$221.00	$90.00
	Total manufacturing cost	$983.00	$381.00	$1,364.00
Ans. 2	Unit product cost = Total manufacturing cost / Units produced
	$1,364 / 10
	$136.40	per unit
	*Working Notes:
	*Calculations for Finishing:
	*Actual direct labor hours = Direct labor cost / Direct labor wage rate
	$312 / $24
	13 hours
	*Overhead cost applied = Predetermined overhead rate * Actual direct labor hours
	$17 * 13
	$221.00
	*Calculations for Fabrication:
	*Overhead cost applied = Direct materials cost * Predetermined overhead rate
	$75 * 120%
	$90.00