JOB "A" Costs for the Month of September Production and sales of Hats Production and sales of Chains 15 units 10 units Direct Material # Sheets of paper used to make HATS #Sheets of paper used to make CHAINS #stickers to make HATS #stickers to make CHAINS I I per unit I per unit 4 per unit 8 per unit S S S $ 0.05 per sheet 0.05 per sheet 0,01 cch 0,01 cch Hats Chains 1,500 Total hours 1,500 5.500 2.500 Direct Labor HOURS Cutting labor hours Assembly labor hours Finishing labor hours Total Direct Labor Hours (September) 3,000 2.500 1.500 4,000 5.000 6,000 11,000 Cost per Hats Chains Total Direct Labor COSTS Cutting labor Assembly labor Finishing labor TOTAL DIRECT LABOR COSTS hour $ 15.00 $ 15.00 $ 15.00 Manufacturing Overhead (TOTALS) Quality control hours 320 Indirect labor -- Supervisor 360 Other indirect labor (stockroom, materials 960 handling) Depreciation on tape machines $1,000 $ hours $ 40.00 per hour hours $60.00 per hour hours $15.00 per hour Depreciation on stapling machines $2,000 Depreciation on cutting machine $3.000 per month per month per month per month per month Rent and taxes on the factory $10,000 Utilities $1,500 Staples Tape $100 SI SO REQUIRED: B (a) Using the information below, you are required to complete the Job Cost sheet (provided in EXCEL) to show all the total product costs for Job A; which includes 15 units of paper hats and 10 units of chains. (5 marks) (b) Shahira Osama, the company CEO, has asked you to help in identifying some other method for allocating overhead in the determination of product cost. Identify at least one other possible way of allocating the overhead and hence RECALCULATE the product cost of the job A (using sheet 2 of the EXECL). (5 marks) (c) In the Discussion Forum in Blackboard titled Discussion Forum Job Costing Case Study, you are required to respond to the following questions: (5 marks) List one advantage and a disadvantage of using direct labor hours as a basis for allocating manufacturing overhead costs. What can you conclude about the product cost of Job A based on the two allocation methods which you have used in (a) and (b) above? JOB "A" Costs for the Month of September Production and sales of Hats Production and sales of Chains 15 units 10 units Direct Material # Sheets of paper used to make HATS #Sheets of paper used to make CHAINS #stickers to make HATS #stickers to make CHAINS I I per unit I per unit 4 per unit 8 per unit S S S $ 0.05 per sheet 0.05 per sheet 0,01 cch 0,01 cch Hats Chains 1,500 Total hours 1,500 5.500 2.500 Direct Labor HOURS Cutting labor hours Assembly labor hours Finishing labor hours Total Direct Labor Hours (September) 3,000 2.500 1.500 4,000 5.000 6,000 11,000 Cost per Hats Chains Total Direct Labor COSTS Cutting labor Assembly labor Finishing labor TOTAL DIRECT LABOR COSTS hour $ 15.00 $ 15.00 $ 15.00 Manufacturing Overhead (TOTALS) Quality control hours 320 Indirect labor -- Supervisor 360 Other indirect labor (stockroom, materials 960 handling) Depreciation on tape machines $1,000 $ hours $ 40.00 per hour hours $60.00 per hour hours $15.00 per hour Depreciation on stapling machines $2,000 Depreciation on cutting machine $3.000 per month per month per month per month per month Rent and taxes on the factory $10,000 Utilities $1,500 Staples Tape $100 SI SO REQUIRED: B (a) Using the information below, you are required to complete the Job Cost sheet (provided in EXCEL) to show all the total product costs for Job A; which includes 15 units of paper hats and 10 units of chains. (5 marks) (b) Shahira Osama, the company CEO, has asked you to help in identifying some other method for allocating overhead in the determination of product cost. Identify at least one other possible way of allocating the overhead and hence RECALCULATE the product cost of the job A (using sheet 2 of the EXECL). (5 marks) (c) In the Discussion Forum in Blackboard titled Discussion Forum Job Costing Case Study, you are required to respond to the following questions: (5 marks) List one advantage and a disadvantage of using direct labor hours as a basis for allocating manufacturing overhead costs. What can you conclude about the product cost of Job A based on the two allocation methods which you have used in (a) and (b) above