# Accounting -cost accounting problem solve

Feb 3rd, 2012
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Answer to question no: 1 Perry Products 1) The weighted average direct manufacturing Labor Rate should be used in preparing manufacturing direct labor cost is \$8.61 Detailed calculation is given below Labor Category Labor Rate Projected Labor Hours Weights Weighted Rate Team Leader \$14.50 250 0.05 \$0.72 Assembly \$8.20 2,000 0.40 \$3.28 Answer to question no: 2 Far-Out Products 1) Using the simple average \$41 Material Dollar expended per Labor Hour as Cost Estimating Relationship (CER) recommended by the auditors, estimated material cost of the task stands at \$ 73,800 Detailed calculation is given below Estimated Materials Dollars Expended per unit labor \$41 Proposed Labor Hours 1,800 Estimated Material Costs (41*1800) \$73,800

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-Answer to question no: 1 Perry Products1) The weighted average direct manufacturing Labor Rate should be used in preparing manufacturing direct labor cost is \$8.61Detailed calculation is given belowLabor CategoryLabor RateProjected Labor HoursWeightsWeighted RateTeam Leader\$14.502500.05\$0.72Assembly\$8.202,0000.40\$3.28Fabrication\$7.501,5000.30\$2.25Production\$9.007500.15\$1.35QC/Test\$10.005000.10\$1.00Total5,0001.008.61So the weighted average direct manufacturing labor rate is \$8.612) Direct manufacturing Labor cost objective for the contract should be \$43,025.00Detailed calculation is given belowLabor CategoryLabor RateProjected Labor HoursLabor Rate * Projected Labor HoursTeam Leader\$14.50250\$3,625Assembly\$8.202,000416,400Fabrication\$7.501,500\$11,250Production\$9.00750\$6,750QC/Test\$10.00500\$5,000Total5,000\$43,025Alternatively Direct manufacturing Labor cost objective = weighted average direct manufacturing Labor Rate* Projected Labor Hours=\$8.61*5000=\$43,025Answer to question no: 2 Far-Out Products1) Using the simple average \$41 Material Dollar expended per Labor Hour as Cost Estimating Relationship (CER) recommended by the auditors, estimated material cost of the task stands at \$ 73,800Detailed calculation is given belowEstimated Materials Dollars Expended per unit labor\$41 Proposed Labor Hours1,800 Estimated Material Costs (41*1800)\$73,800 2) Using the CER

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