Answers
Answer)
Calculation of selling price per unit in Job T687
Amount | |
Direct materials | $ 730.00 |
Direct labor cost | $ 1,460.00 |
Variable Manufacturing Overheads (30 machine hours X $ 4.00 per machine hour) | $ 120.00 |
Fixed Manufacturing Overheads (30 machine hours X $ 19.00 per machine hour) | $ 570.00 |
Total product Cost (A) | $ 2,880.00 |
Number of units manufactured on the job (B) | 10 |
Total product Cost per unit (A/B) | $ 288.00 |
Mark [email protected] 40% of total cost per unit ($ 288 X 40%) | $ 115.20 |
Selling price per unit | $ 403.20 |
Therefore selling price per unit in Job T687 will be $ 403.20
Working Note:
Calculation of Plantwide predetermined overhead rate for fixed manufacturing overhead cost
Plantwide predetermined overhead rate = Total fixed manufacturing overhead cost/ Total machine hours
= $ 575,700/ 30,300 machine hours
= $ 19.00 per machine hour.
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