Hypercraft has two production departments, Cutting and Sewing. The Cutting department applies costs based on direct labor hours while the Sewing department applies costs based on machine hours. Hypercraft had the following cost information for October. Estimated overhead Direct labor hours Cutting $ 54,000 Sewing $ 64,600 950 30 170 2,400 Machine hours Hypercraft received and completed order #225 in October, which had the following information: Direct materials: Direct labor: Cutting department direct labor hours: $ 6,000 $ 15,500 200 hours 20 hours Sewing department machine hours: Hypercraft uses a normal costing system. What is the cost of order #225?
Hypercraft has two production departments, Cutting and Sewing. The Cutting department applies costs based on direct labor hours while the Sewing department applies costs based on machine hours. Hypercraft had the following cost information for October. Estimated overhead Direct labor hours Cutting $ 54,000 Sewing $ 64,600 950 30 170 2,400 Machine hours Hypercraft received and completed order #225 in October, which had the following information: Direct materials: Direct labor: Cutting department direct labor hours: $ 6,000 $ 15,500 200 hours 20 hours Sewing department machine hours: Hypercraft uses a normal costing system. What is the cost of order #225?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Hypercraft has two production departments, Cutting and Sewing. The Cutting department applies costs based on direct labor hours
while the Sewing department applies costs based on machine hours. Hypercraft had the following cost information for October.
Estimated overhead
Direct labor hours
Cutting
$ 54,000
Sewing
$ 64,600
950
30
170
2,400
Machine hours
Hypercraft received and completed order #225 in October, which had the following information:
Direct materials:
Direct labor:
Cutting department direct labor hours:
$ 6,000
$ 15,500
200 hours
20 hours
Sewing department machine hours:
Hypercraft uses a normal costing system. What is the cost of order #225?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F57acaf47-ee4c-416a-b283-beaa01da0580%2F509d2241-49d1-4e1b-b6e1-fcdea759b0a1%2F8il308h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Hypercraft has two production departments, Cutting and Sewing. The Cutting department applies costs based on direct labor hours
while the Sewing department applies costs based on machine hours. Hypercraft had the following cost information for October.
Estimated overhead
Direct labor hours
Cutting
$ 54,000
Sewing
$ 64,600
950
30
170
2,400
Machine hours
Hypercraft received and completed order #225 in October, which had the following information:
Direct materials:
Direct labor:
Cutting department direct labor hours:
$ 6,000
$ 15,500
200 hours
20 hours
Sewing department machine hours:
Hypercraft uses a normal costing system. What is the cost of order #225?
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