Respuesta :
Answer:
Total Direct Materials Cost $ 1,233
Total Direct Labour Cost $ 315
Total Manufacturing Overhead $ 322
Profit per recliner $ 415
Explanation:
Computation of Direct Materials Cost
Lumber 50 units @ $ 5 per unit $ 250
Padding 11 yards @ $ 13 per yard $ 143
Upholstery fabric 28 yards @ $ 30 per yard $ 840
Total Material Cost $ 1,233
Computation of Direct Labour Cost
Jeff Paradise 11 hours @ $ 9 per hour $ 99
John Maddock 12 hours @ $ 18 per hour $ 216
Total Labor Costs $ 315
Computation of Manufacturing Overhead
Total number of hours 23 hours
Overhead rate $ 14 per direct labour hour
$ 23 per hour * $ 14 per hour $ 322
Total Manufacturing Costs $ 1,860
Costs per recliner $ 1,860/6 $ 310
Sales price $ 725
Profit per recliner $ 415
