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.