2. During the year, Job #123, a firm fixed-price Government contract for production of 3,000 raincoats, will be started and completed. Estimate contract cost using the rates determined in Question 1 and the following information. Use the Job Cost Summary table for your calculations. Note Department A's overhead rate was calculated by using direct labor hours as the base and Department B utilized machine hours. • Materials cost totaled $3,200 for Department A and $740 for Department B. Direct labor hours totaled 240 for Department A and 80 for Department B. Machine hours totaled 120 for Department A and 300 for Department B. Proposed / Negotiated Cost Summary for Job #123 Cost Element Department A Department B Total 3200 254 2208 7952 3970 Direct Material 740 88 3610 Direct Labor Factory Overhead 13170 Total Cost
2. During the year, Job #123, a firm fixed-price Government contract for production of 3,000 raincoats, will be started and completed. Estimate contract cost using the rates determined in Question 1 and the following information. Use the Job Cost Summary table for your calculations. Note Department A's overhead rate was calculated by using direct labor hours as the base and Department B utilized machine hours. • Materials cost totaled $3,200 for Department A and $740 for Department B. Direct labor hours totaled 240 for Department A and 80 for Department B. Machine hours totaled 120 for Department A and 300 for Department B. Proposed / Negotiated Cost Summary for Job #123 Cost Element Department A Department B Total 3200 254 2208 7952 3970 Direct Material 740 88 3610 Direct Labor Factory Overhead 13170 Total Cost
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...
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