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30 October, 19:57

Braverman Company has two manufacturing departments-Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $18.00 per direct labor-hour and 110% of direct materials cost, respectively. The company's direct labor wage rate is $16.00 per hour. The following information pertains to Job 700: Finishing Fabrication Direct materials $ 410 $ 60 Direct labor $ 128 $ 48 Required: 1. What is the total manufacturing cost assigned to Job 700? 2. If Job 700 consists of 15 units, what is the unit product cost for this job?

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  1. 30 October, 20:23
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    Instructions are listed below

    Explanation:

    Giving the following information:

    The predetermined overhead rates:

    Finishing: $18.00 per direct labor-hour

    Fabrication: 110% of direct materials cost.

    The company's direct labor wage rate is $16.00 per hour.

    The following information pertains to Job 700:

    Finishing: Direct materials $ 410 - Direct labor $ 128

    Fabrication: Direct materials $ 60 - Direct labor $ 48

    A) Total manufacturing cost = manufacturing cost allocated to finishing + manufacturing cost allocated to fabrication

    Number of hours = (128/16) = 8 hours

    Total manufacturing cost = (8 hours * 18) + ($60*1.10) = $210

    B) Total cost per unit = total cost/Q

    Total cost per unit = (total cost of finishing + total cost of fabrication) / Q

    Total cost per unit = [ (410+128+144) + (60+48+66) ]/15

    Total cost per unit = $57.07
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