A job order for 1,000 pairs of carved wooden bookends is processed and prime costs are as
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Question:
A job order for 1,000 pairs of carved wooden bookends is processed and prime costs are as follows:
Direct MaterialsP 30,000
Direct Labor20,000
Factory overhead rate of 50% of direct labor cost excludes a 2% provision for defective work.
Prior to transfer to stockroom, 50 pairs are found defective and are reprocessed.Prime costs in reprocessing amount to P800 (direct materials of P200 and direct labor of P600).
Assume that the job is a regular or standard one, what factory overhead rate must be used?
What must be the unit cost for the 1,000 pairs of bookends upon completion?
How much is the cost of defective work?
Assuming that this is a special job, how much is the unit cost of the remaining pair of bookends?
Expert Answer:
Lets break down each question step by step 1 Factory Overhead Rate for Regular Job The factory overh... View the full answer
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