AutoSave OH Chapter 2_Excel_Notes.xlsx - Protected View File Home Insert Page Layout Formulas Data Review View Help PROTECTED VIEW Be careful-Files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View Ena 634 X f K L M A B D E H 1 1 02: Cost of job A-143 2 Facts: 1. PearCo received an order A-143 to manufacture two cargo crates. 3 2. PearCo wants to track how much cost has been incurred to make the two crates. 4 3. To make the two crates: The production department requests 12 feet of 2*4 wood boards (cost: $3/feet) 5 and 20 feet of 16 wood boards (cost: $4/feet) 6 Employee Ms. Skilled charges 8 hours to complete the two crates (hourly rate: $15/hour). 7 4. The manufacturing overhead is estimated as follows: PearCo estimates that it will require 160,000 direct labor-hours to meet the coming period's estimated production level. In addition, the company estimates total fixed manufacturing overhead at $200,000, and variable manufacturing overhead costs of $2.75 per direct labor hour. 9 10 What is the total (unit) cost of the job order A-143? 11 Total cost Units Unit cost 12 13 14 8 15 16 17 18 19 20 How to estimate how much Mfg. OH. is carried by A-143? In other words, how much indirect cost should be allocated to this job? 1. Total Mfg. OH. of the period: 2. Estimate the Mfg. OH. urred in one hour: 21 22 23 24 25 26 27 Hint: Direct materials/abor is like the food you order separately, it can be easily charged to your bill. Mfg. OH. is like the shared appetizers: you need the POHR to allocate the cost among the friends 3. Estimate the MOH. Allocated to this job A-143 30 31 32 33 4. Each wood cargo crate costs about to make 36 37 38 Ch 2.Introduto Ch 2. M-department Ch 2. Pearce Type here to search O 0 6