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Huey Parker produces mathematical and financial calculators. Data related to the two products are presented below. LO 3 1. $6 per machine hour Mathematical Financial
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Huey Parker produces mathematical and financial calculators. Data related to the two products are presented below.
LO 3
1. $6 per machine hour
Mathematical Financial Annual production in units 50,000 100,000 Direct materials costs $180,000 $360,000 Direct manufacturing labour costs $ 60,000 $150,000 Direct manufacturing labour-hours 2,500 5,000 Machine-hours 35,000 40,000 Number of production runs 50 50 Inspection hours 1,000 500
Both products pass through Department 1 and Department 2. The departments combined manufacturing overhead costs are
Costs Total Machining $450,000 Setup 144,000 Inspection 126,000
Huey Parker produces mathematical and financial calculators. Data related to the two products are presented below.
LO 3
1. $6 per machine hour
Mathematical | Financial | |
---|---|---|
Annual production in units | 50,000 | 100,000 |
Direct materials costs | $180,000 | $360,000 |
Direct manufacturing labour costs | $ 60,000 | $150,000 |
Direct manufacturing labour-hours | 2,500 | 5,000 |
Machine-hours | 35,000 | 40,000 |
Number of production runs | 50 | 50 |
Inspection hours | 1,000 | 500 |
Both products pass through Department 1 and Department 2. The departments combined manufacturing overhead costs are
Costs | Total |
---|---|
Machining | $450,000 |
Setup | 144,000 |
Inspection | 126,000 |
Required
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Compute the manufacturing overhead cost for each product.
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Compute the manufacturing cost for each product.
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