# Homework 4 Crave Co. - 30879

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1.  Crave Co. uses departmental predetermined overhead rates for allocating overhead to jobs.  The rates are based on machine hours for the Machining department and on direct labor cost for the Assembly department.  The company estimated the following for 2009:

Machining                    Assembly

Machine hours                                     69,450 hrs                   10,150 hrs

Direct labor hours                                3,000 hrs                     15,000 hrs

Direct labor cost                                  \$36,000                                   \$206,400

During the month of June, the cost record for Job 125 shows:

Machining                    Assembly

Direct materials                                                \$12,000                                   \$15,000

Direct labor cost                                  \$6,000                         \$18,000

Machine hours                                     1,200                           550

Direct labor hours                                500                              1,300

Required:

Assuming the Job 125 manufactured 5,000 units of product, what is the product cost of one unit of Job 125?

Solution Description

Assuming the Job 125 manufactured 5,000 units of product, what is the product cost of one unit of Job 125?

Product Cost of one Unit of job 125

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