Question
Brewer Corp has two manufacturing departments - Assembly & Finishing and uses departmental rates for applying overhead. The total estimated fixed overhead for Assembly is
Brewer Corp has two manufacturing departments - Assembly & Finishing and uses departmental rates for applying overhead. The total estimated fixed overhead for Assembly is $100, the variable rate per direct labor hour for Assembly is $6. The total estimated fixed overhead for Finishing is $156, the variable rate per machine hour for Finishing is $3. Brewer expects a total of 10 direct labor hours and 8 machine hours for the period. The following information pertains to Job 200:
Assembly Finishing
Direct materials $410 $60
Direct labor $128 $ 48
Direct labor hours 9
Machine hours 6.6
A. What is the total estimated overhead for the Assembly Department?
B. What is the predetermined overhead rate for the Assembly Department?
C. What is the total applied overhead for the Assembly Department?
D. What is the total estimated overhead cost for the Finishing Department?
E. What is the predetermined overhead rate for the Finishing Department?
F. What is the total applied overhead cost for the Finishing Department assigned to Job 200?
G. What is the total manufacturing cost assigned to Job 200?
H. If Job 200 consists of 15 units, what is the cost per unit? Round to the nearest cent (two decimal places)
I. If the company mandates a 110% markup per job, what would be the price per unit for Job 200? Round to the nearest cent (2 decimal places)
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