Job Costing, budgeted rates, unit costs (4-24) Lytton Ltd. Uses a normal job-costing system with two direct cost categories (direct material and direct labour) and one indirect cost pool. It allocates manufacturing overhead to jobs using a predetermined overhead rate based on direct labour hours. At the start of the year, company estimate that manufacturing overhead would be $632,000, and direct labour hours were estimated at 32,000 hours for the year. In November, Job X905 was completed. Materials costs on the job totalled $13,200 and labour cost totalled$ 10,120 at $22 per hour. At the end of the year it was determined that the company worked 34,100 direct labour hours for the year and incurred $656,125 in the actual manufacturing overhead cost.

Required 1. Job X905 contained 600units. Determine the unit cost that would appear on the job cost sheet. 2. Assuming Lytton prices its products to achieve a 25% margin. What would be the selling price of a Job X905? 3. Determine the underallocated or overallocated overhead for the year.