1. 
   

Direct Materials	Direct Labor	Manufacturing Overhead	Total Cost
$10,000	$8,000	$12,000	?

Requirements:

• Calculate the total cost.
• Determine the total cost per unit if 1,000 units are produced.
• Calculate the predetermined overhead rate if direct labor hours are used as the allocation base.
• Determine the overhead applied to a job that requires 400 direct labor hours.
• Calculate the cost of goods sold if 800 units are sold.
• Discuss the advantages and disadvantages of job costing in a manufacturing environment.