Apple Valley Corporation produces widgets. It uses a job order cost system and has two production departments, A and B. Budgeted manufacturing information for the year is:
Department A Department B
Direct materials $700,000 $100,000
Direct labour $200,000 $800,000
Manufacturing support $600,000 $400,000
Direct labour hours 5,000 20,000
Machine hours 10,000 50,000
Job #432 Required 5,000 machine hours to produce 500 widgets. The actual material and labour costs charged to Job #432 were as follows:
Direct materials $25,000
Direct labour
Department A $ 8,000
Department B $12,000 $20,000
Apple Valley applies manufacturing support costs to jobs on the basis of direct labour costs for Department A and machine hours for Department B, using departmental rates determined at the beginning of the year.
Required: Calculated the cost of one widget manufactured for Job #432.