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Braverman Company has two manufacturing departments—Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $18.00 per direct labor-hour and 110% of direct materials cost, respectively. The company’s direct labor wage rate is $16.00 per hour. The following information pertains to Job 700: Finishing Fabrication Direct materials $ 410 $ 60 Direct labor $ 128 $ 48 Required: 1. What is the total manufacturing cost assigned to Job 700? 2. If Job 700 consists of 15 units, what is the unit product cost for this job?
Braverman Company has two manufacturing departments—Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $18.00 per direct labor-hour and 110% of direct materials cost, respectively. The company’s direct labor wage rate is $16.00 per hour. The following information pertains to Job 700: Finishing Fabrication Direct materials $ 410 $ 60 Direct labor $ 128 $ 48 Required: 1. What is the total manufacturing cost assigned to Job 700? 2. If Job 700 consists of 15 units, what is the unit product cost for this job?
Final answer:The total manufacturing cost assigned to Job 700 is $856, which includes direct materials, direct labor, and overhead expenses. Dividing this total cost by the number of units (15) results in a unit product cost of $57.07 per unit.Explanation:First, we'll calculate the overhead costs for both the Finishing and Fabrication departments using the predetermined overhead rates provided.Finishing overhead = $18.00 per direct labor-hourFabrication overhead = 110% of direct materials costDirect labor hours for Finishing = $128/$16 per hour = 8 hoursDirect labor hours for Fabrication = $48/$16 per hour = 3 hoursFinishing department overhead = 8 hours * $18/hour = $144Fabrication department overhead = 110% of $60 = $66Total Manufacturing Cost for Job 700Total direct materials = $410 (Finishing) + $60 (Fabrication) = $470Total direct labor = $128 (Finishing) + $48 (Fabrication) = $176Total overhead = $144 (Finishing) + $66 (Fabrication) = $210Total manufacturing cost = Total direct materials + Total direct labor + Total overheadTotal manufacturing cost = $470 + $176 + $210 = $856Unit Product Cost for Job 700Unit product cost = Total manufacturing cost / Number of unitsUnit product cost = $856 / 15 units = $57.07 per unit (rounded to two decimal places)...