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Hello, Can I get helo with this. Costello Corporation manufactures a single product. The standard cost per unit of product is shown below Direct materials-2
Hello,
Can I get helo with this.
Costello Corporation manufactures a single product. The standard cost per unit of product is shown below Direct materials-2 pound plastic at $6.70 per pound Direct labor-1.50 hours at $11.00 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit $13.40 16.50 9.00 12.00 $50.90 The predetermined manufacturing overhead rate is $14 per direct labor hour ($21.00 1.50). It was computed from a master manufacturing overhead budget based on normal production of 8,250 direct labor hours (5,500 units) for the month. The master budget showed total variable costs of $49,500 ($6.00 per hour) and total fixed overhead costs of $66,000 ($8.00 per hour). Actual costs for October in producing 3,300 units were as follows Direct materials (6,760 pounds) Direct labor (4,810 hours) Variable overhead Fixed overhead 46,779 54,401 53,220 17,930 $172,330 Total manufacturing costs The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignoredStep by Step Solution
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