Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2020, they estimated total manufacturing overhead costs...


d) Given that Job #4000 consisted of 250 units, determine the production cost per unit?


Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a<br>percentage of direct labor cost. At the beginning of 2020, they estimated total manufacturing overhead<br>costs at $1,203,750, and they estimated total direct labor costs at $1,500,00o.<br>The administration and selling overheads are to be absorbed in each job cost at 33%% of prime cost.<br>Distribution cost should be added to each job according to quotes from outside carriage companies.<br>The company wishes to quote for Job # B4000. Data for the job are as follows:<br>Direct materials cost<br>$159,500<br>Direct labour cost<br>$240,000<br>400 hours<br>$12,850<br>Direct labour hours<br>Special Design Cost<br>Distribution quote from haulage company<br>$17,900<br>

Extracted text: Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2020, they estimated total manufacturing overhead costs at $1,203,750, and they estimated total direct labor costs at $1,500,00o. The administration and selling overheads are to be absorbed in each job cost at 33%% of prime cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for Job # B4000. Data for the job are as follows: Direct materials cost $159,500 Direct labour cost $240,000 400 hours $12,850 Direct labour hours Special Design Cost Distribution quote from haulage company $17,900

Jun 08, 2022
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