A production manager is concerned with the cost the company incurred in the

A production manager is concerned with the cost the

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21. A production manager is concerned with the cost the company incurred in the recent undertaking of a project (Project 102). He compares the project’s costs to another project that produced the same number of products in the previous month. Use the information to determine the following: a. Why did the new project have a higher cost per finished good? The DM were more expensive as well b. What could be the cause of the higher cost per finished good? The could have gotten their material Project 102 Cost per Unit Units Job Cost Direct materials: Chemical A $4/gallon 200 gallons $ 800 Chemical B 2/gallon 490 gallons 980 Production labor 10/hour 15 hours 150 Research labor 14/hour 22 hours 308 Factory overhead 10/hour 37 hours 370 $2,608 Products produced 200 Cost per finished good $13.04 Project 50 Cost per Unit Units Job Cost Direct materials: Chemical A $3/gallon 200 gallons $ 600.00 Chemical B 1.75/gallon 490 gallons 857.50 Production labor 10/hour 16 hours 160.00 Research labor 14/hour 21 hours 294.00 Factory overhead 10/hour 36 hours 360.00 $2,271.50 Products produced 200 Cost per finished good $ 11.36
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