Unframed Print Steel framed (no matting) Wood framed (matting) Volume-expected u
ID: 2433814 • Letter: U
Question
Unframed Print Steel framed (no matting) Wood framed (matting)
Volume-expected units 80,000 15,000 7,000
Sold
Cost Elements
Direct Materials
Print (expected average $12 $16 $20
Cost for each of the 3 categories
Frame Glass $4 $6
Matting $4
Direct labor
Picking time 10min. 10min. 10min.
Picking labor rate/hr. $12 $12 $12
Matting and framing time 20min. 30min.
Matting and framing rate/hr. $21 $21
Manufacturing overhead budget
Supervisory salaries $100,000
Factory rent &nb
Explanation / Answer
Unframed Print
Steel Frame,no mat
Wood Frame with mat
80,000
15,000
7,000
x $12
x $16
x $20
$960,000
$240,000
$140,000
0
$60,000
$42,000
0
0
$28,000
$160,000
$30,000
$14,000
0
$105,000
$73,500
Manufacturing Overheads (See Note 1)
$268,800
$67,200
$39,200
$1,388,800
$502,200
$336,700
$17.36
$33.48
$48.10
How much of the total overhead cost is expected to be allocatedto steel framed prints? $67,200
Unframed Print
Steel Frame,no mat
Wood Frame with mat
Volume expected units sold80,000
15,000
7,000
Cost per printx $12
x $16
x $20
Total Print Cost$960,000
$240,000
$140,000
Frame Glass0
$60,000
$42,000
Matting0
0
$28,000
Direct Labor Picking Time (10 minutes x $12 x80,000/60)$160,000
Picking Time (10 minutes x $12 x15,000/60)$30,000
Picking Time (10 minutes x $12 x7,000/60)$14,000
Matting and framing (20minutes x $21 x 15,000/60)0
$105,000
Matting and framing (30 minutes x $21 x 7,000/60)$73,500
Manufacturing Overheads (See Note 1)
$960,000 x 28%$268,800
$240,000 x 28%$67,200
$140,000 x 28%$39,200
Total Cost$1,388,800
$502,200
$336,700
Unit ProductCost $1,388,800 / 80,000$17.36
$502,200 / 15,000$33.48
$336,700 / 7,000$48.10
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