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  • A. Unit Cost For Job 701

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    Arina Felita
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    The document contains calculations of unit costs for two jobs (701 and 702) at a manufacturing company. It first calculates the unit manufacturing overhead as $46 based on the company's total overhead costs and output. It then calculates the total costs and unit costs for each job based on their prime costs, overhead applied at $46 per unit, and number of units produced. The second part breaks down the overhead costs into setup, ordering, maintenance, and power and calculates the unit costs for each job using these individual overhead rates.

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    The document contains calculations of unit costs for two jobs (701 and 702) at a manufacturing company. It first calculates the unit manufacturing overhead as $46 based on the company's total overhead costs and output. It then calculates the total costs and unit costs for each job based on their prime costs, overhead applied at $46 per unit, and number of units produced. The second part breaks down the overhead costs into setup, ordering, maintenance, and power and calculates the unit costs for each job using these individual overhead rates.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    12 views2 pages

    A. Unit Cost For Job 701

    Uploaded by

    Arina Felita
    The document contains calculations of unit costs for two jobs (701 and 702) at a manufacturing company. It first calculates the unit manufacturing overhead as $46 based on the company's total overhead costs and output. It then calculates the total costs and unit costs for each job based on their prime costs, overhead applied at $46 per unit, and number of units produced. The second part breaks down the overhead costs into setup, ordering, maintenance, and power and calculates the unit costs for each job using these individual overhead rates.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    QUESTION 4

    a. Unit Cost for Job 701


    Manufacturing overhead of one unit = ($960,000 + $160,000 + $640,000 + $80,000)/40,000 =
    $46

    Prime costs $25,000


    Overhead assigned = $46 x 180 8,280
    Total cost 33, 280

    So, unit cost for Job 701 = $33,280 / 650 = $51.20

    Unit Cost for Job 702


    Prime costs $ 18,000
    Overhead assigned = $46 x 220 10,120
    Total cost 28,120

    So, unit cost for Job 702 = $28,120 / 500 = $ 56.24

    b. Setup = $960,000/4,800 = $200/ setup


    Ordering = $160,000/20,000 = $8/order
    Maintenance = $640,000/64,000 = $10/machine hour
    Power = $80,000/200,000 = $0.40/kWh

    Unit cost for Job 701


    Prime costs $ 25,000
    Overhead assigned:
    $200 x 12 2,400
    $8 x 16 128
    $10 x 360 3,600
    $0.40 x 180 72
    Total cost 31,200

    So, unit cost for Job 701 = $31,200/650 = $48

    Unit cost for Job 702


    Prime costs $ 18,000
    Overhead assigned:
    $200 x 15 3,000
    $8 x 30 248
    $10 x 300 3,000
    $0.40 x 650 260
    Total cost 31,200

    So, unit cost for Job 702 = $24,500/500 = $49

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