MUST SHOW ALL WORK Radius Home Interiors, Inc., began two jobs during July 2015.
ID: 2445025 • Letter: M
Question
MUST SHOW ALL WORK
Radius Home Interiors, Inc., began two jobs during July 2015. The company had no beginning inventory. The following information is available:
Job 11 Job 12
Direct material $11,800 $12,800
Direct labor $ 9,600 $ 7,300
Machine hours 250 180
The company estimates manufacturing overhead for 2015 is $130,000, and the company estimates that 5,200 machine hours will be used during the year. Radius applies overhead to production based on machine hours.
Required:
1. Calculate the cost of Job 11.
2. Calculate the cost of Job 12.
Explanation / Answer
Calculation of total costs for jobs:
Job 11
Job 12
Direct material
$ 11,800.00
$ 12,800.00
Direct labor
$ 9,600.00
$ 7,300.00
Allocated manufacturing overhead costs (See workings)
$ 625.00
$ 450.00
Total Cost
$ 22,025.00
$ 20,550.00
Workings:
Allocation of manufacturing overhead to jobs:
Overhead rate = total Estimated overhead / total estimated machine hours
= $13000 / 5200
$ 2.50
Per hour
Job 11
Job 12
Machine hours (A)
250
180
Overhead rate per machine hour (B)
$ 2.50
$ 2.50
Allocated manufacturing overhead costs = A*B
$ 625.00
$ 450.00
Calculation of total costs for jobs:
Job 11
Job 12
Direct material
$ 11,800.00
$ 12,800.00
Direct labor
$ 9,600.00
$ 7,300.00
Allocated manufacturing overhead costs (See workings)
$ 625.00
$ 450.00
Total Cost
$ 22,025.00
$ 20,550.00
Workings:
Allocation of manufacturing overhead to jobs:
Overhead rate = total Estimated overhead / total estimated machine hours
= $13000 / 5200
$ 2.50
Per hour
Job 11
Job 12
Machine hours (A)
250
180
Overhead rate per machine hour (B)
$ 2.50
$ 2.50
Allocated manufacturing overhead costs = A*B
$ 625.00
$ 450.00
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