1. Given the following information, determine the predetermined overhead rate:

Zipps Manufacturing estimates that their overheard costs for the next period will be $300,000. They estimate that their direct labor costs for the next period will be $500,000. Zipps has decided to use direct labor as the activity base.

2. Apply the predetermined overhead rate calculated above to the following Job Cost Sheet and determine the cost of the job and cost per unit.

Job Cost Sheet Job No. 2014-5789 ITEM: Purple People Eaters QUANTITY: 100 units DATE REQUESTED: 6/15/2014 FOR: One Horn Flyers DATE COMPLETED: 7/10/2014

Date: Direct Material Amount Direct Labor Amount overhead amount

1-July dir mat: $1,350 Dir lab: $700 Overhead Amount:

5-July dir mat: $1,100 dir lab: $550 Overhead Amount:

10-July Dir mat: ----- Dir lab: $400 overhead amount:

Cost of Completed Job:

Direct Material: ????

Direct Labor: ???

Manufacturing Overhead: ????

Total Cost: ????

Unit Cost: ???