Barrys Better Baking Company has two departments, Cooking and Packaging. The company uses a job order costing system and computes a predetermined overhead rate in each department. The Cooking department bases its rate on machine-hours, and the Packaging Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:

Department

Cooking Packaging

Direct labor-hours 12,000 18,000

Machine-hours 40,000 20,000

Total fixed machine overhead cost $620,000 $112,500

Variable manufacturing overhead per machine-hour $3.00 --

Variable manufacturing overhead per direct labor-hour -- $5.80

1. Compute the predetermined overhead rate for each department.
2. The job cost sheet for Job 8510, which was started and completed during the year showed the following:

Department

Cooking Packaging

Direct labor-hours 45 70

Machine-hours 150 85

Direct materials $1,600 $600

Direct labor cost $950 $1,100

Using the predetermined overhead rates that you computed in (1) above, compute the total

manufacturing cost assigned to Job 8510.

3. If Job 8510 includes 50 units, what is the unit product cost?
4. Assume that Barrys Better Baking uses cost-plus pricing (and a markup percentage of 150% of total manufacturing cost) to establish selling prices for all of its jobs, what would be the selling price for the job when stated on a per unit basis?