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Boeing has received an order to manufacture three types of aircraft: 737, 747, and 787. The following information is available for each job: Aircraft Direct
Boeing has received an order to manufacture three types of aircraft: 737, 747, and 787. The following information is available for each job:
Aircraft | Direct Materials | Direct Labor | Overhead Rate (% of Direct Labor) |
737 | $40,000,000 | $20,000,000 | 150% |
747 | $60,000,000 | $25,000,000 | 150% |
787 | $80,000,000 | $30,000,000 | 150% |
Requirements:
- Compute the total cost for each aircraft.
- Determine the total manufacturing overhead applied to each job.
- Calculate the total job cost for Boeing.
- Prepare a Job Cost Sheet for each aircraft.
- Analyze the profitability of each aircraft assuming a selling price of $150,000,000 for 737, $200,000,000 for 747, and $250,000,000 for 787.
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