Make a Decision: 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: Count Direct Labor Hours Direct Labor Rate per Hour Total Direct Labor Cost Job 107 11 5.06 $15.00 70.40 Job 125 15 7.65 15.00 108.00 Job 160 17 9.52 15.00 132.60 Job 192 9 3.69 18.00 58.50 a. Determine the direct labor cost per unit for each job. b. Interpret the trend in per-unit labor cost. c. Determine the direct labor hours per sports coat. d. Interpret what may be happening with Job 192. Be sure to show your work.
Make a Decision: 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: Count Direct Labor Hours Direct Labor Rate per Hour Total Direct Labor Cost Job 107 11 5.06 $15.00 70.40 Job 125 15 7.65 15.00 108.00 Job 160 17 9.52 15.00 132.60 Job 192 9 3.69 18.00 58.50 a. Determine the direct labor cost per unit for each job. b. Interpret the trend in per-unit labor cost. c. Determine the direct labor hours per sports coat. d. Interpret what may be happening with Job 192. Be sure to show your work.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Make a Decision: 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:
| Count | Direct Labor Hours | Direct Labor Rate per Hour | Total Direct Labor Cost |
|
| Job 107 | 11 | 5.06 | $15.00 | 70.40 |
| Job 125 | 15 | 7.65 | 15.00 | 108.00 |
| Job 160 | 17 | 9.52 | 15.00 | 132.60 |
| Job 192 | 9 | 3.69 | 18.00 | 58.50 |
a. Determine the direct labor cost per unit for each job.
b. Interpret the trend in per-unit labor cost.
c. Determine the direct labor hours per sports coat.
d. Interpret what may be happening with Job 192.
Be sure to show your work.
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