HI5017 Tutorial Questions On Managerial Accounting - Assessment Task 2

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Question 2 - Week 3 (7 marks)

Tik Tok Company manufactures customized coffee tables. The following relates to Job No. X10, an order for 150 coffee tables:

Direct materials used $22 800
Direct labour hours worked 600
Direct labour rate per hour $16.00
Machine hours used 400
Applied factory overhead rate per machine hour $30.00

Required:

  1. What is the total manufacturing cost for Job No. X10? (3 marks)
  2. Calculate the cost per coffee table for Job No. X10? (2 marks)
  3. List two uses of this unit cost information to the managers at Tik Tok Company. (2 marks)

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