Question
1) Eeeva Company has two departments, X and Y. Overhead is applied based on direct labor cost in Department X and machine-hours in Department Y.
1) Eeeva Company has two departments, X and Y. Overhead is applied based on direct labor cost in Department X and machine-hours in Department Y. The following additional information is available:
Budgeted Amounts Department X Department Y
Direct labor cost $180,000 $165,000
Factory overhead $225,000 $200,000
Machine-hours 51,000 mh 40,000 mh
Actual data for Job #25 Department X Department Y
Direct materials requisitioned $15,000 $18,000
Direct labor cost $11,000 $14,000
Machine-hours 5,000 mh 3,000 mh
Required:
a. Compute the budgeted factory overhead rate for Department X.
b. Compute the budgeted factory overhead rate for Department Y.
c. What is the total overhead cost of Job 25?
d. If Job 25 consists of 50 units of product, what is the profit per unit if selling price is $2,000 per unit?
e. What is the proportion of the direct labor cost incurred with respect to the total cost of the job?
f. Should the company go ahead with this job?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started