Compute the rate in the dying department

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Reference no: EM132515346

Glass Mountain Vases Ltd. (GMV) manufactures a variety of vases that it sells to various craft stores in Canada. The company uses a job-order costing in which a predetermined overhead rate is used to apply manufacturing overhead costs to jobs. In the Firing Division costs are based on machine-hours and the Dying division is based on direct labour hours.

At the beginning of the year the, Glass Mountain made the following estimates:

                                                        Firing                       Dying

Direct labour hours                     10,000                  75,000

Machine hours                             85,000                   6,000

Direct materials cost                    565,000                  320,000

Direct labour cost                          110,000               420,000

Manufacturing Overhead Cost           600,000                   745,000

Job 118R was started on March 2 and finished on March 11. For Job 118R the cost records show the following:

Department

                                                Firing                                   Dying

Direct Labour hours                 21                               65

Machine Hours                        125                             18

Direct materials cost                 $450                       $230

Direct Labour Cost                       $325                     $110

Question 1: Compute the predetermined overhead rate used during in the Firing Division. Compute the rate in the Dying department

Question 2: Compute the total overhead cost for job 118R

Question 3: What is the total cost for job 118R. If the job consisted of 40 units what is the total cost per job.

Reference no: EM132515346

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