A company assigns overhead cost to completed jobs on the basis of 125% of direct labor cost. The job cost sheet for job 313 shows that $10,000 in direct materials have been used on the job and that $12,000 in direct labor cost has been incurred. If 1,000 units were produced in job 313, what is the cost per unit?

Exercise 3-6

The following cost data relate to the manufacturing activities of Crystal Corporation during the last year:

Material overhead costs incurred	$
Indirect Materials	34,000
Indirect labor	190,000
Property tax, factory	19,500
Utilities, factory	102,000
Depreciation, factory	290,000
Insurance, factory	15,000
Total actual cost included	650,000

Other costs incurred
Purchases of raw materials (both direct and indirect)	$500,000
Direct labor cost	85,000
Inventories
Raw materials, beginning	40,000
Raw materials, ending	30,000
Work in process, beginning	60,000
Work in process, ending	40,000

The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $33 per machine hour. A total of 20,000 machine hours were recorded for the year.

Required:

1. Compute the amount of under or over-applied overhead cost for the year.
2. Make a schedule of costs of goods manufactured for the year.