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?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 31E: Chester Company provided information on overhead for its three producing departments as follows:...

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