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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:

  1. Compute the total cost for each aircraft.
  2. Determine the total manufacturing overhead applied to each job.
  3. Calculate the total job cost for Boeing.
  4. Prepare a Job Cost Sheet for each aircraft.
  5. 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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