Budgeted manufacturing costs


Stillman Corporation uses a job-order cost system and has two production departments, Machining and Assembly. Budgeted manufacturing costs for the year are: Machining Assembly Direct Materials $700,000 $100,000 Direct Labor 200,000 800,000 Manufacturing Overhead 600,000 400,000 The actual materials and labor costs charged to Job No. 234 during the year were as follows: Direct Materials $25,000 Direct Labor Costs for each Department are: Machining $ 8,000 Assembly 12,000 To calculate the full unit cost Stillman applies manufacturing overhead to production orders on the basis of direct labor cost using separate departmental predetermined overhead rates. Using dollars of overhead allocated per dollar of direct labor I.E. the allocation base is direct labor dollars, is a rare but acceptable allocation method. To summarize; the machining department uses $700,000 in direct materials, $200,000 in direct labor and $600,000 in manufacturing overhead. The Assembly department uses $100,000 in direct materials, $800,000 in direct labor and $400,000 in manufacturing overhead. Job 234 uses $25,000 in direct materials and direct labor costs of $8000 in Machining and $12,000 in Assembly.The total manufacturing costs associated with job No. 234 with this method should be?

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Accounting Basics: Budgeted manufacturing costs
Reference No:- TGS0696981

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