Questions 12 & 13 are based on the following information. The following cost data relates to Bruno Company for the year 2008:

Estimated manufacturing overhead costs $240,000

Estimated direct labour cost 300,000

Estimated direct labour hours 30,000

Actual direct labour cost 315,000

Actual direct labour hours 33,000

Allocation base: Direct labour cost

Other expenses (Actual):

Factory depreciation on equipment $65,300

Factory rent 51,000

Factory utilities 28,900

Factory property taxes 26,000

Indirect labour 23,800

Indirect materials 32,000

Sales commissions 52,500

12. Manufacturing overhead allocated for 2008 is:

(A) $252,000

(B) $450,450

(C) $210,000

(D) $220,500

13. The entry to dispose of the manufacturing overhead variance is:

(A) Manufacturing Overhead dr $25,000

Cost of Goods Sold cr $25,000

(B) Cost of Goods Sold dr $25,000

Manufacturing Overhead cr $25,000

(C) Manufacturing Overhead dr $17,000 Cost of Goods Sold cr $17,000

(D) Cost of Goods Sold dr $17,000

Manufacturing Overhead cr $17,000

Beth Electronics makes CD players by way of three consecutive processes: Assembly, Programming & Packing. Inspection takes place during the processing operation, at which point bad CD players are separated from good CD players and sold as scrap at $40 each.

Data from the month of June for the Programming Department are as follows:

Beginning Work in Process Inventory -0- units

Transfer in from Assembly 20,000 units

Completed and transferred out to Packing in June 13,000 units

Ending Work in Process Inventory 4,000 units

Normal losses are estimated to be 5% of the units transferred in from Assembly. At inspection, 3000 CD players were rejected. These units were fully assembled, 80% complete as to material added in the Programming Department and 50% complete as to conversion costs.

Production costs incurred in the Programming Department during June are summarized as follows:

Costs:

Beginning Work in Process Inventory $0

Costs added during April:

Transfer in from Assembly $515,000

Materials cost added 323,000

Direct Labour 258,000

Manufacturing overhead 241,200

Total Costs $1,337,200

The ending work-in-process inventory at June had reached the following degree of completion:

Transfer from Assembly 100%

Materials added 60%

Conversion costs 40%

Materials added and conversion costs are incurred evenly throughout the process.

Required:

(i) Compute the equivalent units for direct materials (From Assembly & Materials added) and conversion costs. (4 marks)

(ii) Compute the cost per univalent unit for direct materials and conversion costs. (3 marks)