TDFW completed two projects during the month of May. Although the projects were both similar, the company incurred higher costs for Job 71.
a. Why did Job 71 have higher costs per finished good?
Job 70
_________________________________Cost per Unit Units Job Cost
Direct materials: Fabric $7/yard...................500 yards..........................................$3,500
Wood 10/pounds.......................................200 pounds............................................2,000
Production labor 15/hour 18 hours 270 Assembly labor................12/hour 10 hours 120
Factory overhead 7/machine hours 200 hours....1,400..........................................$7,290
Products produced................................................100
Cost per finished goods...................................$72.90
Job 71
_________________________________Cost per Unit______________ Units Job Cost
Direct materials: Fabric $7/yard...................425 yards.........................................$2,975
Wood 10/pounds.......................................170 pounds...........................................1,700
Production labor 15/hour 13 hours 195 Assembly labor...................12/hour 8 hours 96
Factory overhead 7/machine hours 150 hours 1,050............................................$6,016
Products produced...................................................75
Cost per finished goods.....................................$80.21