Braverman Company has two manufacturing departments—Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $28.00 per direct labor-hour and 120% of direct materials cost, respectively. The company’s direct labor wage rate is $34.00 per hour. The following information pertains to Job 700: Finishing Fabrication Direct materials $ 500 $ 125 Direct labor $ 442 $ 306
Required: A. What is the total manufacturing cost assigned to Job 700?
B. If Job 700 consists of 30 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)
Solution A:
| Particulars | Finishing | Fabrication | Total (Job 700) |
| Direct Material | $500.00 | $125.00 | $625.00 |
| Direct Labor | $442.00 | $306.00 | $748.00 |
| Manufacturing Overhead: | |||
| Finishing [($442/$34)*$28] | $364.00 | $364.00 | |
| Fabrication (125*120%) | $150.00 | $150.00 | |
| Total Manufacturing Cost | $1,306.00 | $581.00 | $1,887.00 |
Therefore Total Manufacturing Costs Assigned to Job 700 = $1,887
Solution B:
Unit Product Cost = Total Manufacturing Costs / Number of units = $1887 / 30 = $62.90
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