How much of Melissa's material (after making the correction) is attributable to direct material and how much to overhead?

How is the direct material cost assigned to individual jobs, and how is the overhead cost allocated?

 

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Melissa Petersen is a quality control specialist employed by Fenway Racing. Fenway Racing manufactures custom race cars to exact specifications of drivers. Melissa's job is to perform final testing of each car's engine and make final performance related adjustments. Some adjustments involve simple recalibration and consume only indirect materials like lubricants, tape, washers, and screws. Occasionally, a major adjustment is needed, and requires an expensive direct material component. Below is Melissa's materials requisition form for March 7, 20X6: FENWAY RACING Employee: Date: Material Lubricant Valve cover Tape Circuit board Tie rod Washers Melissa Petersen 03/07/X6 Job Number indirect material #11245 indirect material indirect material #11305 indirect material Quantity 1 can 2 units 1 roll 1 unit 4 units 10 units Materials Requisition Per Unit Cost $6 each $140 each $3 per roll $940 each $156 each $0.10 each Extended Cost $6.00 $140.00 $3.00 $940.00 $624.00 $1.00 Melissa Petersen is a quality control specialist employed by Fenway Racing. Fenway Racing manufactures custom race cars to exact specifications of drivers. Melissa's job is to perform final testing of each car's engine and make final performance related adjustments. Some adjustments involve simple recalibration and consume only indirect materials like lubricants, tape, washers, and screws. Occasionally, a major adjustment is needed, and requires an expensive direct material component. Below is Melissa's materials requisition form for March 7, 20X6: FENWAY RACING Employee: Date: Material Lubricant Valve cover Tape Circuit board Tie rod Washers Melissa Petersen 03/07/X6 Job Number indirect material #11245 indirect material indirect material #11305 indirect material Quantity 1 can 2 units 1 roll 1 unit 4 units 10 units Materials Requisition Per Unit Cost $6 each $140 each $3 per roll $940 each $156 each $0.10 each Extended Cost $6.00 $140.00 $3.00 $940.00 $624.00 $1.00

Answer rating: 100% (QA)

To determine the amount of Melissas material attributable to direct material and overhead we need to identify the direct materials associated with spe... View the full answer