JOB COST FLOWS Ionia Company uses a normal job-order costing system. The company has two departments through which most jobs pass. Overhead is applied using a plantwide overhead rate of $12 per direct labor hour. During the year, several jobs were completed. Data pertaining to one such job, Job 9-601, follow:

Direct materials $18,000 Direct labor cost:

Department A (6,000 hours @ $6) $36,000 Department B (1,000 hours @ $6) $6,000 Machine hours used:

Department A 100 Department B 1,200 Units produced 10,000 Required:

. Compute the total cost of Job 9-601.

. Compute the per-unit manufacturing cost for Job 9-601.

For Requirements 3 and 4, assume that Ionia uses departmental overhead rates. In Department A, overhead is applied at the rate of $3 per direct labor hour. In Department B, overhead is applied at the rate of $7 per machine hour.

. Compute the total cost of Job 9-601.

. Compute the per-unit manufacturing cost for Job 9-601.

Exercise