crave co 496714
1. Crave Co. uses departmental predetermined overhead rates for allocating overhead to jobs. The rates are based on machine hours for the Machining department and on direct labor cost for the Assembly department. The company estimated the following for 2009:
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Machining Assembly
Manufacturing overhead cost $277,800 $103,200
Machine hours 69,450 hrs 10,150 hrs
Direct labor hours 3,000 hrs 15,000 hrs
Direct labor cost $36,000 $206,400
During the month of June, the cost record for Job 125 shows:
Machining Assembly
Direct materials $12,000 $15,000
Direct labor cost $6,000 $18,000
Machine hours 1,200 550
Direct labor hours 500 1,300
Required:
a) Assuming the Job 125 manufactured 5,000 units of product, what is the product cost of one unit of Job 125?
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