Question
Darger Company has two departments in its manufacturing process: Shaping and Trimming. The company used the following data at the beginning of the year to
Darger Company has two departments in its manufacturing process: Shaping and Trimming. The company used the following data at the beginning of the year to calculate the predetermined overhead rates:
Shaping | Trimming | Total | |
Estimated total machine hours (MHs) | 3,000 | 7,000 | 10,000 |
Estimated total fixed manufacturing overhead cost | $16,500 | $20,300 | $36,800 |
Estimated variable manufactuing overhead cost per unit | $1.70 | $2.50 | na |
During the most recent month, the company started and completed two jobs - Job A and Job H. There were no beginning inventories Cost data for the two jobs was as follows:
Job A | Job H | |
Direct materials | $12,800 | $6,700 |
Direct labor | $24,300 | $7,800 |
Shaping machine hours | 2,000 | 1,000 |
Trimming machine hours | 2,800 | 4,200 |
Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. The selling price of the Job A units is $12 each and 9,072 units were completed during the month. Calculate the following:
Total Job A cost: (Enter your answer as a whole number, using commas if necessary and no dollar sign)
Job A unit product cost: (Enter your answer using two decimal places and no dollar sign)
Unit product margin for Job A: (Enter your answer using two decimal places and no dollar sign)
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