7. Jason Ltd Produces two types of calculators: Financial and Mathematical. Data
related to both the products are presented below: Compute the Manufacturing
Overhead Cost Per Unit for each Product. (11 marks)
Particulars
Financial
Mathematical
Annual production in units
45,000
90,000
Direct material costs
$180,000
$360,000
Direct Manufacturing labour costs
$90,000
$180,000
Direct Manufacturing labour hours
2500
5000
Machine-hours
30,000
60,000
Number of production units
45
45
Inspection hours
1200
600
Both products pass through Department 1 and Department 2.
The department combined manufacturing overhead costs are:
Costs
Total
Machining
$560,000
Setup
108,000
Inspection
117,000