Question
Kimberly Glass Works makes custom glass tiles. During May, the company started and finished Job #915. The company's records show the following direct materials were
Kimberly Glass Works makes custom glass tiles. During May, the company started and finished Job #915. The company's records show the following direct materials were requisitioned for Job #915
Clear white tiles: 3,300 units at $3.00 per unit
Specialty colours: 8 quarts at $5.50 per quart
Mirror gloss: 6 quarts at $11.00 per quart
| Estimated | Actual |
Direct labour hours | 25,500 hours | 29,000 hours |
Machine hours | 25,000 hours | 26,600 hours |
Manufacturing Overhead | $331,500 | $344,000 |
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|
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Labour time records show the following employees worked on Job #915:
Sarah Goodson: 20 hours at $15 per hour
Micah McWhorter: 10 hours at $25 per hour
Machine hours on Job #915 was 20 hours:
Required
Assume the company has chosen machine hours as its allocation base.
A) Compute the Predetermined overhead rate - 2 marks
B) Compute the total amount of direct materials, direct labour, and manufacturing overhead that should be shown on Job #915's job cost record 4 marks.
C) Job #915 consists of 3,500 tiles. If each tile sells for $11.00, what is the gross profit per tile? -2 marks
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