1. Emery Company utilizes a job order costing system in which predetermined overhead rates are used to apply factory cost to jobs. The predetermined rate in the Department A is based on direct labor cost and in Department B is based on the machine hours. The following estimates are made at the beginning of the year:

	Department A	Department B
Direct Labor Hours	24,000	120,000
Machine Hours	140,000	10,000
Direct Material Cost	1,020,000	1,300,000
Direct Labor Cost	260,000	840,000
Factory Overhead Cost	1,204,000	1,470,000

Job 808 was started on January 1 and completed on January 25. The company's cost records show the following information concerning the job.

	Department A	Department B
Direct Labor Hours	60	170
Machine Hours	220	40
Direct Material Cost	940	664
Direct Labor Cost	580	1,360

At year-end, the records of the company show the actual cost and data for all jobs worked during the year.

	Department A	Department B
Direct Labor Hours	20,000	124,000
Machine Hours	130,000	18,000
Direct Material Cost	860,000	1,360,000
Direct Labor Cost	216,000	872,000
Factory Overhead Cost	1,140,000	1,500,000

a. How much is the unit cost of Job 808 if it contained 200 units? b. How much is the total over/(under)- applied factory overhead at year-end?

2. Enough Company is capable of turning out 15 completed units every 30 seconds. The plant normally operates for 5 days a week on a two 8-hour shift. Each year, the factory is closed 12 working days for holidays. Machinery is idle 750 hours for cleaning, oiling, and maintenance. Normal sales averages 110,000 units a year over a 5-year period. The expected sales volume for the year is 112,500 units. The fixed cost of operating the plant is 385,000 per year. How much is the fixed unit costs under practical capacity?