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bernie2981 bernie2981
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9 years ago
Twinkle Ornaments Company uses job costing. Twinkle Ornaments Company has two departments, Trimming and Finishing. Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department. The following additional information is available:

Estimated amounts   Trimming Dept   Finishing Dept
Direct labor cost    $320,000     $400,000
Direct labor hours    25,000     40,000
Manufacturing overhead costs    $400,000     $300,000

Actual data for completed Job No. 650 is as follows:

Actual amounts   Trimming Dept   Finishing Dept
Direct materials requisitioned    $22,500     $52,500
Direct labor cost    $35,400     $37,100
Direct labor hours    5,400     5,000

If Job No. 650 consists of 500 units of product, the average unit cost of this job is closest to:
A) $163.50.
B) $458.50.
C) $426.64.
D) $295.00.
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Managerial Accounting

Managerial Accounting


Edition: 4th
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nucleinuclei
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bernie2981 Author
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9 years ago
Answers my question perfectly.
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