Question
Use the following to answer questions 1-3: Chavez Corporation. Chavez Corporation makes a product for which the following information is available: Standard unit cost information:
Use the following to answer questions 1-3: Chavez Corporation.
Chavez Corporation makes a product for which the following information is available:
Standard unit cost information:
Direct materials6 gallons @ $10 per gallon
Direct labor2 hours @$15 per hour
Overhead is applied on the basis of direct-labor hours. Furthermore, the company makes no attempt to distinguish between variable overhead and fixed overhead in applying overhead to production.
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 10,00
Job XYZ was started on January 1 and finished on December 30. Job XYZ was for 100 units, and used the following actual amounts:
Direct Materials 620 gallons @ $6,500
Direct Labor 220 hours @ $3,500
1. Compute the total manufacturing cost of Job XYZ under actual costing
2. Compute the total manufacturing cost of Job XYZ under normal costing
3.Compute the total manufacturing cost of Job XYZ under standard costing:
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