For Cost Accounting:

1. 

Problem 5 Predetermined Factory Overhead Aileen Co. makes shirts that it sells to retailers. The company uses a job order costing system in which predetermined overhead rates are used to apply factory overhead cost to jobs. The predetermined rate in the Sewing department in based on machine hours and in Cutting department is based on direct labor cost. The following estimates are made at the beginning of the year: Sewing Direct labor hours 24,000 Cutting 120,000 Machine hours 140,000 10,000 Direct Material Cost 1,020,000 1,300,000 Direct Labor Cost 260,000 840,000 FOH cost 1,204,000 1,470,000 Job 101 was started on February 1 and completed on February 25. Th company's cost records show the following information concerning the job. Sewing Cutting Direct labor hours 60 170 Machine hours 220 40 Material used 940 664 Direct labor cost 580 1,360 At the end of the year, the records of the company show the actual cost data for all jobs worked during the year. Sewing Cutting Direct labor hours 20,000 124,000 Machine hours 130,000 18,000 Direct Material Cost 860,000 1,360,000 Direct Labor Cost 216,000 872,000 FOH cost 1,140,000 1,500,000 278Factory Overhead Required: 1. Compute the factory overhead rate used in the Sewing and Cutting department during the year. 2. Compute the total factory overhead cost applied to job 101. 3. What would be the total cost of job 101? If the job contained 100 units, what would be the unit cost of the job 101? 4 How much is the over or under-applied factory overhead in each department at the end of the year