Question

Tik Tok Company manufactures customized coffee tables. The following relates to Job No. X10, an order...

Tik Tok Company manufactures customized coffee tables. The following relates to Job No. X10, an order for 150 coffee tables: Direct materials used $22 800 Direct labour hours worked 600 Direct labour rate per hour $16.00 Machine hours used 400 Applied factory overhead rate per machine hour $30.00 Required: a) What is the total manufacturing cost for Job No. X10? b) Calculate the cost per coffee table for Job No. X10? c) List two uses of this unit cost information to the managers at Tik Tok Company.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a) Total Manufacturing cost for Job X10.

Direct Material = $22,800

Direct labour = $9,600 (600*$16)

Factory Overhead = $12,000 (400*$30)

Total Manufacturing Cost = $44,400 ($22,800+$9,600+$12,000)

b) Cost for coffe table for Jon X10

Cost for coffe table = Total Manufacturing cost/ no of coffee tables.

Cost for coffee Table = $296 ($44,400/150)

c) Uses of Unit cost Information

Unit costing is also known as single costing

1) Unit cost system will be used to analyse the profitability of the particular product.

For ex: If the unit sale price is 50 & Cost is 40, then we can analyse the data efficiently if we have cost per unit.

2)It provides traceful information to identify wastages, Losses & Inefficiencies.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Tik Tok Company manufactures customized coffee tables. The following relates to Job No. X10, an order...
Tik Tok Company manufactures customized coffee tables. The following relates to Job No. X10, an order for 150 coffee tables: Direct materials used $22 800 Direct labour hours worked 600 Direct labour rate per hour $16.00 Machine hours used 400 Applied factory overhead rate per machine hour $30.00 Required: a) What is the total manufacturing cost for Job No. X10? b) Calculate the cost per coffee table for Job No. X10? c) List two uses of this unit cost information...
Allen Company manufactures coffee tables and uses an activity   minus−   based costing system. Each coffee table consists of...
Allen Company manufactures coffee tables and uses an activity   minus−   based costing system. Each coffee table consists of 30 separate parts totaling​ $210 in direct​ materials, and requires 6.0 hours of machine time to produce. Additional information​ follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts ​$3.00 per part Machining Machine hours ​$3.50 per machine hour Assembling Number of parts ​$1.00 per part Packaging Number of finished units ​$6.00 per finished unit What is the cost of materials handling...
Beaver Company manufactures coffee tables and uses an activity−based costing system to allocate all manufacturing conversion...
Beaver Company manufactures coffee tables and uses an activity−based costing system to allocate all manufacturing conversion costs. Each coffee table consists of 20 separate parts totaling $220 in direct​ materials, and requires 5 hours of machine time to produce. The company incurs no direct labor costs. Additional information​ follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $3.00 per part Machining Machine hours $4.10 per machine hour Assembling Number of parts $1.00 per part Packaging Number of...
Wheeler’s Bike Company manufactures custom racing bicycles. The company uses a job order cost system to...
Wheeler’s Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: Bike parts $ 346,800 Factory machinery depreciation 58,000 Factory supervisor salaries 138,000 Factory direct labor 210,175 Factory supplies 37,400 Factory property tax 27,250 Advertising cost 20,500 Administrative salaries 54,500 Administrative-related depreciation 24,200 Total expected costs $ 916,825 Required: 1. Calculate the predetermined overhead rate per direct labor hour if...
The following information relates to Burgundy for July 2020: Actual direct labour costs                            
The following information relates to Burgundy for July 2020: Actual direct labour costs                                             $50,000 Actual direct labour rate per hour                                 $10 Factory overhead rate per direct labour hour                $15 Factory overhead incurred                                           $80,000 As part of the cost planning and cost control of operations and activities, management is concerned regarding the applied overhead rate used. Considering the company had budgeted a factory overhead of $90,000 and 6,000 hours of direct labour, identify whether there is a numerator and/or denominator...
The following information relates to Burgundy for July 2020: Actual direct labour costs $50,000 Actual direct...
The following information relates to Burgundy for July 2020: Actual direct labour costs $50,000 Actual direct labour rate per hour $10 Factory overhead rate per direct labour hour $15 Factory overhead incurred $80,000 As part of the cost planning and cost control of operations and activities, management is concerned regarding the applied overhead rate used. Considering the company had budgeted a factory overhead of $90,000 and 6,000 hours of direct labour, identify whether there is a numerator and/or denominator reason...
Baskin Company uses a job-order costing system to manufactures large tiger cages for exotic pet owners....
Baskin Company uses a job-order costing system to manufactures large tiger cages for exotic pet owners. On January 1, the beginning of the current year, the company’s inventory balances were as follows: Raw materials $ 22,500 Work in process $ 12,600 Finished goods $ 31,300 Baskin Company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37,300 machine-hours and incur $154,795 in manufacturing overhead cost. The following transactions...
Z Company manufactures wooden, hand-carved figurines and uses a job order costing system. Last month on...
Z Company manufactures wooden, hand-carved figurines and uses a job order costing system. Last month on the “Pine” job, 180 units were made with 400 direct labor hours worked and $4,500 of direct materials used and $6,000 of direct labor used. Last month on the “Oak” job, 100 units were made with 200 direct labor hours worked and $2,700 of direct materials used and $3,000 of direct labor used. Last month on the “Cherry” job, 80 units were made with...
The production department of a National Detergents where detergents are produced, furnishes the following information for...
The production department of a National Detergents where detergents are produced, furnishes the following information for the month of January. Material used OMR 13,500 Direct wages OMR 11,250 Labor hours worked 9,000 Hours of machine operation 7,500 Overhead cost 9,000       For a job order executed by department during the period, the relevant information further provided is: Material used OMR 1,500 Direct wages OMR 800 Labor hours worked 800 Hours of machine operation 600                   If you are the...
Direct labour variances and overhead spending variance The following data for Kitchen Tile Company relates to...
Direct labour variances and overhead spending variance The following data for Kitchen Tile Company relates to the production of 18 000 tiles during the past month. The entity allocates fixed overhead costs at a standard rate of $19 per direct labour hour. Direct Labour: Standard cost is 6 tiles per hour at $24 per hour Actual cost per hour was $24.50 Labour efficiency variance was $6720 F Fixed overhead costs: Estimated = $60,000 Actual = $58,720 Required (a)    How many...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT