Question
PonCi Company produces customized uniforms in its Bogor workshop. To ensure high quality of product and timeliness of product delivery, PonCi employs skilled tailors who
PonCi Company produces customized uniforms in its Bogor workshop. To ensure high quality of product and timeliness of product delivery, PonCi employs skilled tailors who works in its three department: Cutting, Sewing, and Finishing. PonCi applies job-costing systems to determine job costs and to serve as a basis for bidding and pricing the jobs. PonCi utilizes an enterprise resource planning software to conveniently trace the direct materials and direct labor used in each job. The direct labor that PonCi employs receives $25 per hour. PonCi uses normal costing to allocate its manufacturing overhead cost. The predetermined overhead rate is calculated based on machine hours for Sewing Departments and based on direct labor costs for Cutting Department dan Finishing Department. The 2021 budget for the Bogor workshop is as follows:
Cutting Sewing Finishing Department Department Department Manufacturing overhead costs $2.254.500 $9,037,600 $4.181,000 Direct labor-cost $13,513,000 $15,336,000 $14.655,000 Machine-hours 111.000 386.000 170.000Cutting Sewing Finishing Department Department Department SMUIA Direct materials cost $193,000 $50,000 $102,000 Direct labor hour 2.475 2,440 1.960 Machine-hours 198 980 175 UUIN Direct materials cost $337.000 $148,000 $286,000 Direct labor hour 5.980 7,725 4.980 Machine-hours 910 1686 858Cutting Sewing Finishing Department Department Department Manufacturing overhead costs $2,437,500 $8.987,900 $4.376,000 Direct labor-cost $14,880,000 $15,758,000 $15,105,000 Machine-hours 109 000 390,800 181.000Step by Step Solution
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