a. Determine the direct labor cost per unit for each job. Job 107 Job 125 Job 160 Job 192 Direct Labor Cost per Sports Coat 7.00 b. Based on the calculations above. Indicate which of these is correct. 1. The direct labor cost increased over the first three jobs, and this increase relates to increase in labor time and not increase in labor rates. 2. The direct labor cost decreased over the first three jobs, and this decrease relates to decrease in labor time and not decrease in labor rates. 3. The direct labor cost increased over the first two jobs, and this increase is due to the increase in labor rates. 4. The direct labor cost decreased for all jobs, and the decrease is due to the decrease in labor rates and decrease in labor time. c. Determine the direct labor hours per sports coat. Direct Labor Hours per Sports Coat Job 107 Job 125 Job 160 Job 192 d. Interpret what may be happening with Job 192. 1. Though there was an increase in the labor cost, the overall increase in the per unit labor cost was not significant. This may be due to higher efficiency. 2. There is an increase in the labor cost and the overall per unit labor cost has also increased. This indicates the efficiency has remained the same but the cost has gone up. 3. Though there was an increase in the labor cost, the decrease in the per unit labor cost is significant. This may be due to higher efficiency. 4. Though there was a decrease in the labor cost, the overall increase in the per unit labor cost was not significant. This may be due to higher efficiency.
a. Determine the direct labor cost per unit for each job. Job 107 Job 125 Job 160 Job 192 Direct Labor Cost per Sports Coat 7.00 b. Based on the calculations above. Indicate which of these is correct. 1. The direct labor cost increased over the first three jobs, and this increase relates to increase in labor time and not increase in labor rates. 2. The direct labor cost decreased over the first three jobs, and this decrease relates to decrease in labor time and not decrease in labor rates. 3. The direct labor cost increased over the first two jobs, and this increase is due to the increase in labor rates. 4. The direct labor cost decreased for all jobs, and the decrease is due to the decrease in labor rates and decrease in labor time. c. Determine the direct labor hours per sports coat. Direct Labor Hours per Sports Coat Job 107 Job 125 Job 160 Job 192 d. Interpret what may be happening with Job 192. 1. Though there was an increase in the labor cost, the overall increase in the per unit labor cost was not significant. This may be due to higher efficiency. 2. There is an increase in the labor cost and the overall per unit labor cost has also increased. This indicates the efficiency has remained the same but the cost has gone up. 3. Though there was an increase in the labor cost, the decrease in the per unit labor cost is significant. This may be due to higher efficiency. 4. Though there was a decrease in the labor cost, the overall increase in the per unit labor cost was not significant. This may be due to higher efficiency.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:Analyze Antolini Enterprises' job costs
Antolini Enterprises produces men's sports coats that are sold by popular department stores. Each retail order is treated as a job that accumulates materials, labor, and
overhead costs for a batch of sports coats. Management has obtained data on the labor costs for four selected jobs over a six-month period. Each selected job represents a
similar style and size of sports coat. The data are as follows:
Direct Labor
Job 107
Job 125
Job 107
Job 125
Job 160
Job 192
8
a. Determine the direct labor cost per unit for each job.
Job 160
Count
10
14
16
Hours
4.50
7.00
8.80
3.20
Direct Labor
Cost per Sports Coat
7.00
Job 107
Job 125
Job 160
Job 192
Direct Labor Rate
per Hour
Job 192
b. Based on the calculations above. Indicate which of these is correct.
$14.00
14.00
14.00
16.00
c. Determine the direct labor hours per sports coat.
Direct Labor
Hours per Sports Coat
Total Direct
Labor Cost
1. The direct labor cost increased over the first three jobs, and this increase relates to increase in labor time and not increase in labor rates.
2. The direct labor cost decreased over the first three jobs, and this decrease relates to decrease in labor time and not decrease in labor rates.
3. The direct labor cost increased over the first two jobs, and this increase is due to the increase in labor rates.
4. The direct labor cost decreased for all jobs, and the decrease is due to the decrease in labor rates and decrease in labor time.
$ 63.00
98.00
123.20
51.20
d. Interpret what may be happening with Job 192.
1. Though there was an increase in the labor cost, the overall increase in the per unit labor cost was not significant. This may be due to higher efficiency.
2. There is an increase in the labor cost and the overall per unit labor cost has also increased. This indicates the efficiency has remained the same but the cost has gone up.
3. Though there was an increase in the labor cost, the decrease in the per unit labor cost is significant. This may be due to higher efficiency.
4. Though there was a decrease in the labor cost, the overall increase in the per unit labor cost was not significant. This may be due to higher efficiency.
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