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Millstone Company uses job costing. Millstone Company has two departments, Sanding and Fin

Millstone Company uses job costing. Millstone Company has two departments, Sanding and Finishing. Manufacturing overhead is allocated based on direct labor cost in the Sanding Department and direct labor hours in The Finishing Department. The following additional information is available:

Estimated amounts

Sanding Dept.

Finishing Dept.

Direct labor cost

$250,000

$450,000

Direct labor hours

        26,000

        50,000

Manufacturing overhead costs

$350,000

$275,000

 

Actual data for completed Job No. 140 is as follows:

Actual amounts

Sanding Dept.

Finishing Dept.

Direct materials requisitioned

$25,000

$50,000

Direct labor cost

$36,000

$42,000

Direct labor hours

          4,500

          4,000

 

A) Compute the predetermined manufacturing overhead rate for the Sanding Department.

B) Compute the predetermined manufacturing overhead rate for the Finishing Department.

C) What is the total manufacturing overhead cost for Job. No. 140?

D) If Job No. 140 consists of 400 units of product, what is the average unit cost of this job?

Dec 09 2019 View more View Less

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