Collaborative Learning Cases 4-44 Normal job costing, unit costs. (J. Watson) Pearson Ltd. uses a normal job-costing system and applies overhead on the basis of direct labour-hours. At the beginning of the year, the company estimated LO 2,4 1. $12 per direct labour hc that total overhead costs for the year would be $180,000, and it budgeted total labour-hours of 15 A Cliol For Plant depreciation Actual labour-hours worked for the period January 1 to November 30 were 13,750. On December 1, the company had three jobs in process: Work-in-Process at December 1 Job Number 815 817 822 Direct Materials (DM) $1,400 $2,500 $1,700 Direct Labour (DL) 1,200 2,400 600 Overhead (OH) (applied) 600 1,350 450 Total 3,200 6,250 2,750 During the month of December the following costs were incurred by job: Job # 815 817 822 823 824 DM $500 $ 700 $1,300 $1,250 $1,500 DL $900 $1,440 $3,060 $3,960 $5,940 DL hours 50 hours 80 hours 170 hours 220 hours 330 hours In addition, the company incurred the following costs during the month of December (these costs have not yet been recorded in the books): raw DM purchases $7,800 Advertising expense Adm. 2,490 Factory repairs and maintenance ToH Factory utilities 1,800 Factory supplies por Production supervisor salary 2,200 Sales personnel salaries Period 9,700 Adm 3,450 Interest expense pened as Adm Administrative salaries rend 1,400 Adler Additional Information 1. The balance in the Overhead Control account on December 1 was $195,010. 2. There were no jobs in Finished Goods as of December 1. BILO 3. Jobs 815, 822, 823, and 824 were completed during December 4. Job 824 is the only job in Finished Goods as of December 31. 5. The company's pricing policy is 200% of total manufacturing cost. Required 1. Calculate the budgeted overhead rate used by Pearson. Porte 2. Calculate the unit cost of ending work-in-process inventory assuming that the number of units in the job(s) total 250 units. 3. Calculate the cost of goods manufactured and the unadjusted gross margin for the month of December. 4. Calculate the amount of over- or underallocated overhead for the year. $5,200 lend 1,500 Ft 1,800 FOX achel