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Tinkle-Tinkle Glass Company makes glass globe paperweights for desks. The company uses a job-order cost system and predetermined overhead rates to apply manufacturing overhead costs

Tinkle-Tinkle Glass Company makes glass globe paperweights for desks. The company uses a job-order cost system and predetermined overhead rates to apply manufacturing overhead costs to jobs. The predetermined overhead rate in the Fabrication Department is based on machine-hours, and the rate in the Finishing Department is based on direct labor hours. At the beginning of the year, the company’s management made the following estimates for the year:

Department

Fabrication Finishing

Machine hours 60,000 20,000

Direct labor hours 22,000 32,000

Direct material cost $300,000 $150,000

Direct labor cost $215,000 $500,000

Fixed manufacturing overhead cost $475,000 $200,000

Variable manufacturing overhead per machine hour $1.50 --

Variable manufacturing overhead per direct labor hour -- $1.35

Job 25 (the Christmas holiday special) was started on July 1 and completed on August 15. The company’s cost records show the following information concerning the job:

Department

Fabrication Finishing

Machine hours 250 50

Direct labor hours 75 100

Direct materials cost $975 $750

Direct labor cost $650 $825

What would be the total cost recorded for Job 25? If Job 25 contained 20 units, what would be the unit product cost? If it contained 1,000 units, what would be the unit product cost?


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