Job Costing Exercise

Mixwell Ltd received an order for bottles of champagne. The units were manufactured as Job #525 and passed through three cost centres; Mixing, Bottling and Packing whose overhead absorption rates are as follows:

Mixing $80 per machinehour

Bottling $36 per labourhour

Packing $48 per labourhour

The following production costs and data were recorded:

DirectMaterials $2 520

Direct Labour:

Mixing: 160 hours @ $22.00 per hour

Bottling: 280 hours @ $16.00 per hour

Packing: 120 hours @ $18.00 perhour

80 machine hours were recorded in Mixing, and General and Administration overheads are absorbed at 20% of production cost. Mark up (Profit) is calculated at 40% mark-up on cost

Required:

1. Calculate the total job cost and selling price for job #525.
2. Assuming the same data as in part A, what would be the cost per unit if there were 100 units in the batch?