cheddahcheese
New member
- Joined
- Mar 28, 2010
- Messages
- 1
Hi Guys,
I need some help. I'm not sure if I am doing this problem correctly.
Question:
A job has prime cost of $270. It uses 10 machine hours in Department 1 and 15 direct labor hours in Department 2. Calculate the total product cost for the job.
*I calculated Dept. 1 overhead rate as $6. Dept. 2 overheard rate as $2. I know these are right.
So what I did for Dept 1:
10 hrs x 6 = $60
For Dept 2:
15 hrs x 2 = $30
Total product cost = $270 (prime cost) + $90 (total overhead?) = $360.
Is this the correct way to do this problem?
I need some help. I'm not sure if I am doing this problem correctly.
Question:
A job has prime cost of $270. It uses 10 machine hours in Department 1 and 15 direct labor hours in Department 2. Calculate the total product cost for the job.
*I calculated Dept. 1 overhead rate as $6. Dept. 2 overheard rate as $2. I know these are right.
So what I did for Dept 1:
10 hrs x 6 = $60
For Dept 2:
15 hrs x 2 = $30
Total product cost = $270 (prime cost) + $90 (total overhead?) = $360.
Is this the correct way to do this problem?