Jills manufacturing produces light bulbs for big department


Problem - Jills Manufacturing produces light bulbs for big department stores. For 201X, the two production departments had budgeted allocation bases of 100,000 machine hours in Department 1 and 50,000 direct manufacturing labor hours in Department 2. The budgeted manufacturing overheads for 2007 were $1,200,000 for Department 1 and $1,000,000 for Department 2. For Job 80, the actual costs incurred in the two departments were as follows:

DEPARTMENT 1 -

Direct Materials Purchased $44,000

Direct Materials Used $34,000

Direct Manufacturing Labor $21,000

Indirect Manufacturing Labor $4,400

Indirect Materials Used $3,000

Lease on Equipment $6,500

Utilities $1,000

DEPARTMENT 2 -

Direct Materials Purchased $71,000

Direct Materials Used $7,600

Direct Manufacturing Labor $21,400

Indirect Manufacturing Labor $3,600

Indirect Materials Used $1,900

Lease on Equipment $1,500

Utilities $1,200

Job 80 incurred 700 machine hours in Department 1 and 75 hours in Department 2. Also, Job 80 had 200 manufacturing labor hours in Department 1 and 250 in Department 2. Jills Corp. uses a budgeted departmental overhead rate for applying overhead to production. Job 80 consisted of 3,000 light bulbs.

REQUIRED: Calculate the total cost and per unit cost of Job 80.

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Accounting Basics: Jills manufacturing produces light bulbs for big department
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