How much was the production cost per unit (cost per crate) of finished product?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can I get requirement D answered for me please
Transcribed Image Text:Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a
percentage of direct labor cost.
overhead costs at $1,015,00o, and they estimated total direct labor costs at $1,400,000.
At the beginning of 2018, they estimated total manufacturing
The administration and selling overheads are to be absorbed in each job cost at 15% of production
cost. Distribution cost should be added to each job according to quotes from outside carriage
companies.
The company wishes to quote for job # W500. Data for the job are as follows:
Direct materials cost
$169,450
Direct labour cost
$230,000
Direct labour hours
400 hours
Special Design Cost
Distribution quote from haulage company
Units of product produced
$12,300
$17,930
250 crates
a) Compute Epsilon Manufacturing Company predetermined manufacturing overhead rate for
2018.
b) How much manufacturing overhead was allocated to Job #W500?
c) Calculate the total cost & quotation price of Job #W500, given that a margin of 25% is applied.
d) How much was the production cost per unit (cost per crate) of finished product?
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