TEB budgeted the following production cost for 1,000 units of product for job 588 during 20XX: Direct Materials (DM) 400 pounds at $5 per pound $ 2,000 Direct Labor (DL) 1,500 hours at $15 per hour 22,500 Manufacturing Overhead (MO) 1,500 Machine hours at $10 * per machine hour 15,000 Total 39,500 * $60,000 estimated overhead for the year divided by 6,000 estimated machine hours for the year = $10 estimated overhead per machine hour. TEB, Inc. incurred the following actual costs for job 588: Direct Materials (DM) 420 pounds at $5.50 per pound $ 2,310 Direct Labor (DL) 1,540 hours at $14.50 per hour 22,330 Manufacturing Overhead (MO) $62,000 actual overhead for the year; 5,900 actual machine hours; 1,600 actual machine hours used on job 588? Compute the total cost (DM, DL, and MO) of job 588 using standard costing Using standard costing, what is the total job cost?

Question

Business

Cayden Washington

12 October, 12:51

TEB budgeted the following production cost for 1,000 units of product for job 588 during 20XX: Direct Materials (DM) 400 pounds at $5 per pound $ 2,000 Direct Labor (DL) 1,500 hours at $15 per hour 22,500 Manufacturing Overhead (MO) 1,500 Machine hours at $10 * per machine hour 15,000 Total 39,500 * $60,000 estimated overhead for the year divided by 6,000 estimated machine hours for the year = $10 estimated overhead per machine hour. TEB, Inc. incurred the following actual costs for job 588: Direct Materials (DM) 420 pounds at $5.50 per pound $ 2,310 Direct Labor (DL) 1,540 hours at $14.50 per hour 22,330 Manufacturing Overhead (MO) $62,000 actual overhead for the year; 5,900 actual machine hours; 1,600 actual machine hours used on job 588? Compute the total cost (DM, DL, and MO) of job 588 using standard costing Using standard costing, what is the total job cost?

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Answers (1)

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Genevieve Henderson · Answer 1

Total Product cost for Job 588 is $ 41,453

Explanation:

Direct Materials (DM) = 420 pounds at $5.50 per pound = $ 2,310

Direct Labor (DL) = 1,540 hours at $14.50 per hour = $22,330

Manufacturing Overhead (MO) $62,000

actual overhead for the year; 5,900

actual machine hours; 1,600 actual machine hours used on job

Total Product Cost:

Overhead = ($62,000 : 5,900) * 1600 = $16,813.56

Total Product Cost for Job 588 = $2,310 + $22,330 + $16,813.56

= $ 41,453.56

Total Product cost for Job 588 is $ 41,453