Job costing, budgeted rates, unit costs. (J. Watson) Lytton Ltd. uses a normal job costing system with two direct cost categories (direct materials and direct labour) and one indirect cost pool. It allocates manufacturing overhead to jobs using a predetermined overhead rate based on direct labour-hours. At the start of the year, the company estimated that manufacturing overhead would be $632,000, and direct labour-hours were estimated at 32,000 hours for the year. In November, Job #X905 was completed. Materials costs on the job totalled 1. Unit cost, $64.81

$13,200 and labour costs totalled $10,120 at $22 per hour. At the end of the year, it was determined that the company worked 34,100 direct labour-hours for the year and incurred

$656,125 in actual manufacturing overhead costs.

REQUIRED lL. ie #X905 contained 500 units. Determine the unit cost that would appear on the job cost sheet.

2. Assuming Lytton prices its products to achieve a 25% margin, what would be the selling price of Job X905?

3. Determine the underallocated or overallocated overhead for the year.

LO1