Question
LUIS Corporation makes a product for which the following information is available: Standard unit cost information: Direct materials 6 gallons @ $10 per gallon Direct
LUIS Corporation makes a product for which the following information is available:
Standard unit cost information:
Direct materials 6 gallons @ $10 per gallon
Direct labor 2 hours @ $15 per hour
Overhead is applied on the basis of direct-labor hours.
The following budgeted and actual production information is also available:
Actual Budgeted
Direct labor hours 20,000 15,000
Overhead $ 230,000 $ 180,000
Production (in units) 9,000 10,000
Job Alpha was for 200 units, and used the following actual amounts:
TOTAL direct materials cost - $20,000; TOTAL direct labor - 200 hrs. at a total cost of $10,000.
QUESTIONS - PLEASE SHOW CALCULATIONS
1.Compute the total manufacturing cost of Job Alpha under actual costing:
2.Compute the total manufacturing cost of Job Alpha under normal costing:
3.Compute the total manufacturing cost of Job Alpha under standard costing:
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