Braverman Company has two manufacturing departments- Finishing and Fabrication.

Question

Braverman Company has two manufacturing departments- Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $20.00 per direct labor-hour and 120% of direct materials cost, respectively The company's direct labor wage rate is $26.00 per hour. The following information pertains to Job 700 Direct materials Direct labor $460 s390 s 85 $286 Required: 1. What is the total manufacturing cost assigned to Job 700? 2 If Job 700 consists of 20 units, what is the unit product cost for this job? (Round your answer to 2 1 Total manufacturing cost per unit

Explanation / Answer

Question relating to "Braveman company Computation of manufacturing over head for Job 700 Finishing department Predetermined over head rate =$20 per Direct labour hour number of Direct labour hours in finishing department =Direct labour cost / labour cost per hour =$390/$26 =15 hours manufactruing over head for finishing department =$20*15 hours =$300 Fabrication department 120% of direct material cost manufactruing over head for fabrication department =$85*120% =$102 (1) Total manufactruing cost assigned to Job 700 particulars Finishing Fabricating Total Job 700 material $              460 $                85 $                   545 Direct labour $              390 $              286 $                   676 manufacturing ove head' $              300 $              102 $                   402 Total manufactring cost $               1,623 (2) Unit production cost Total manufactruing cost =$1623 Total Units in Job 700 =20 Units Unit production cost = Total manufacturng cost /Number units =$1623/20 =$81.15

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