Question

19., Cobee, Inc. manufactures chainsaws. Each chainsaw uses $10 in direct materials and $3 in direct labor per unit. Cobee has two activities: Machining, which is applied at the rate of $2 per machine hour, and Finishing, which is applied at the rate of $20 per batch. This month, Cobee made 200 chainsaws, using 1,000 machine hours in 40 batches. What is the total manufacturing cost for one chainsaw?

.

Alberver, Inc. manufactures jumbers that sell for $40. Each jumber uses $15 in direct materials and $5 in direct labor per unit. Alberver has two activities: Machining, which is applied at the rate of $2 per machine hour, and Finishing, which is applied at the rate of $20 per batch. This month, Alberver made 400 jumbers, using 1,000 machine hours in 40 batches. What is the gross profit for one jumber?

Answer 1

19)
	total manufacturing cost for one chainsaw
						$
	direct materials					10
	direct labor					3
	overhead
	machining		(1000*2)/200			10
	finishing		(20*40)/200			4
	total manufacturing cost for one chainsaw					27	answer
	Alberver
						$
	direct materials					15
	direct labor					5
	overhead
	machining		(1000*2)/400			5
	finishing		(20*40)/400			2
	total manufacturing cost for one chainsaw					27
	gross profit = selling price - total manufacturing cost
		40-27
		13	Answer