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:

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.)

Answer

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $12.00 per direct labor-hour and $8.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $15.00 per hour. The following information pertains to Job N-60:

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $12.00 per direct labor-hour and $8.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $15.00 per hour. The following information pertains to Job N-60:

	Assembly				Testing & Packaging
Direct materials	$	345			$	27
Direct labor	$	75			$	15

Required:

1. What is the total manufacturing cost assigned to Job N-60? (Do not round intermediate calculations.)

2. If Job N-60 consists of 10 units, what is the unit product cost for this job? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Thanks

Luthan Company uses a plantwide predetermined overhead rate of $23.60 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $283,200 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor-hours.

Luthan Company uses a plantwide predetermined overhead rate of $23.60 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $283,200 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor-hours.

The company incurred actual total manufacturing overhead cost of $265,000 and 11,600 total direct labor-hours during the period.

Required:

Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.

Answer

Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 41,000 direct labor-hours would be required for the period’s estimated level of production.

Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 41,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $503,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 per direct labor-hour. Harris’s actual manufacturing overhead cost for the year was $654,384 and its actual total direct labor was 41,500 hours.

Required:

Compute the company’s plantwide predetermined overhead rate for the year.

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