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Job Costing Time Period Used to Compute Indirect Cost Rates 1 2 3 4 Pools manufactured and sold 565 490 245 100 Additonal information: Direct manufacturing labor hours 1 hours per pool Actual direct material cost $14 per pool Actual direct manufacturing labor rate $20 per hour Budgeted variable manufacturing overhead $15 per direct manufacturing labor-hour Budgeted fixed manufacturing overhead $12,250 per quarter Requirements 1 2 Plunge Manufacturing produces outdoor wading and slide pools. The company uses a normal-costing system and allocates manufacturing overhead on the basis of budgeted manufacturing labor-hours. Most of the company’s production and sales occur in the first and second quarters of the year. The company is in danger of losing one of its larger customers, Socha Wholesale, due to large fluctuations in price. The owner of Plunge has requested an analysis of the manufacturing cost per unit in the second and third quarters. You have been provided the following budgeted information for the coming year: Quarter Calculate the total manufacturing cost per unit for the second and third quarter assuming the company allocates manufacturing overhead costs based on the budgeted manufacturing overhead rate determined for each quarter. Calculate the total manufacturing cost per unit for the second and third quarter assuming the company allocates manufacturing overhead costs based on an annual budgeted manufacturing overhead rate. 2nd Quarter 3rd Quarter Direct material costs $6,860 $3,430 Direct manufacturing labor costs 9,800 4,900 Variable manufacturing overhead costs 7,350 3,675 Fixed manufacturing overhead costs 12,250 12,250 Total manufacturing costs $36,260 $24,255 Manufacturing cost per pool $74 $99 2nd Quarter 3rd Quarter Direct material costs $6,860 $3,430 Direct manufacturing labor costs 9,800 4,900 Variable manufacturing overhead costs 7,350 3,675 Fixed manufacturing overhead costs 17,150 8,575 Total manufacturing costs $41,160 $20,580 Manufacturing cost per pool $84 $84 1. Calculate the total manufacturing cost per unit for the second and third quarter assuming the company allocates manufacturing overhead costs based on the budgeted manufacturing overhead rate determined for each quarter. 2. Calculate the total manufacturing cost per unit for the second and third quarter assuming the company allocates manufacturing overhead costs based on an annual budgeted manufacturing overhead rate. Flexible Budgets, Direct-Cost Variances, and Management Control Materials and manufacturing labor variances Direct Materials Direct Manufacturing Labor Cost incurred: Actual inputs x actual prices $150,000 $100,000 Actual inputs x standard prices 162,000 95,000 Standard inputs allowed for actual output x standard prices 168,000 90,000 Requirement Compute the price, efficiency, and flexible-budget variances for direct materials and direct manufacturing labor. Consider the following data collected for Theta Homes, Inc.: Direct Materials F/U Direct Manufacturing Labor F/U (1) Price variance -12,000 F 5,000 U →Actual inputs x standard prices - cost incurred (2) Efficiency variance -6,000 F 5,000 U →Standard inputs allowed for actual output x standard prices - cost incurred (3) Flexible-budget variance -18,000 F 10,000 U →Standard inputs allowed for actual output x standard prices - cost incurred Cost incurred: Actual inputs x actual prices $150,000 100000 Actual inputs x standard prices 162,000 95,000 Standard inputs allowed for actual output x standard prices 168,000 90,000

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Task: Calculate the total manufacturing cost per unit for the second and third quarter assuming the company allocates manufacturing overhead costs based on the budgeted manufacturing overhead rate determined for each quarter.
Answer: Total manufacturing cost consists of all the costs that go into a finished product. In this scenario those are: Direct Material Cost, Direct Manufacturing Labor Cost and both overheads. So all those listed in the scenario.
Let’s go and review one by one.
• Direct Material Cost can be calculated from the info provided in the first sheet “INSUTRCTIONS” = actual direct material cost 14$ * number of units in Quarter 2 and Quarter 3 and this is what the formulae in B4 and C4 cells are doing.
• Direct manufacturing labor costs can be calculated from the...

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