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Weaver Company's predetermined overhead rate is $20.00 per direct labor-hour and its direct labor wage rate...

Weaver Company's predetermined overhead rate is $20.00 per direct labor-hour and its direct labor wage rate is $14.00 per hour. The following information pertains to Job A-200: Direct materials $220 Direct labor $210 Required: 1. What is the total manufacturing cost assigned to Job A-200? 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.)

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Answer #1

Direct labor hour = Direct labor cost / Rate per hour

                             = $210 / $14

                             = 15

Allocated overhead = Direct labor hour × Overhead rate

                                = 15 × $20

                                = $300

1.

Manufacturing cost = Direct material + Direct labor + Allocated overhead

                                 = 220 + 210 + 300

                                 = $730 (Answer)

2.

Average cost = Manufacturing cost / Number of units

                        = $730 / 80

                        = $9.125

                        = $9.13 rounded (Answer)

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