Q1. Apollo Manufacturing produces a basic cellphone as a contract manufacturer. Overhead is applied at a rate of 130% of direct labor cost. The direct labor rate is $33 per hour. In March, there was no beginning or ending work in process, and the assembly department produced 62,000 finished phones. The materials cost was $295,000 and there were 12,750 direct labor hours worked during the month. Actual overhead spending was $549,100 during the month. Calculate the total cost of production in the month of March and the cost per unit for each phone produced. Determine if overhead was overapplied or underapplied and by what amount.
Direct Materials:
Direct Labor:
Overhead Applied:
Total cost:
Cost per unit:
Total overhead incurred:
Overhead applied:
Enter overapplied or underapplied:
Q2. Mega manufacturing produces wooden chairs. The cutting department produces all of the component parts and transfers the parts to the assembly department. The assembly department had no work in process at the beginning of the month and had two jobs stated during the month.
Since materials are transferred in, all materials are charged to each job at the beginning of the job. The materials cost is $22.50 per chair. Assembly time is 15 minutes per chair and the direct labor rate is $36 per hour. Overhead is charged to a job only when a job is completed and ready to transfer to finished goods. The overhead is applied on a per-chair basis at a rate of $13.10 per chair.
Job No.1 for 2,600 chairs and it was started and completed during the month. Job No.2 was for 4,325 chairs, and it was 63% complete at month end.
Calculate the costs to complete Job No.1 and the unit cost per chair. Calculate the costs charged as of month's end and the equivalent units of production for Job No.2
Job 1
Direct materials:
Direct labor:
Overhead applied:
Total cost:
Cost per unit (total cost / units):
Job 2
Units started: materials, labor, overhead
percent complete: materials, labor, overhead
equivalent units (units started * percent complete): materials, labor, overhead
cost per unit: materials, labor, overhead
total cost: materials, labor, overhead, total