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PART A: Determine the cost of a job: E-Z Boy started and finished Job 310 during April. The company's records show that the following direct materials were requisitioned for Job 310:
Lumber: 50 units @ $9.00 per unit Padding: 15 yards @ $20.00 per yard Upholstery fabric: 30 yards @ $25.00 per yardLabor time records show the following employees (direct labor) worked on Job 310:
Vince Owens: 10 hours at $10 per hourPatrick Erin: 15 hours at $15 per hour
E-Z Boy allocates manufacturing overhead at a rate of $9 per direct labor hour.Requirements: Compute the total amount of direct materials, direct labor and manufacturing overhead that should be shown on Job 310's job cost record.
Job 310 consists of five recliners. If each recliner sells for $600, what is the gross profit per recliner? Using activity-based costing, what are indirect costs allocated while direct costs are not allocated? Discuss the difference between "allocate" and "assign".
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