JOB ORDER COSTING IN CLASS EXAMPLE UNIT COST, SELLING PRICE AND PREDETERMINED OVERHEAD RATE Cost Assumptions . Direct Material o Ink- 2@ $10 Direct Labor-3 hours per book @ $12 Manufacturing Overhead . . o Depreciation o Supplies- o Rent- o Utilities- o Taxes- o Insurance- o Supervisor- $160,000 $56,000 $148,000 $12,000 $106,000 $8,000 $110,000 197 P a g e STAGE 5-SELLING AND ADMINISTRATIVE EXPENSES ANDDIVIDENDS ecord the following: Selling expenses were 20% of sales Administrative expenses totaled $1,000,000 Dividends totaled $50,000 PREPARATION OF FINANCIAL STATEMENTS 7. 8. 9. Cost of goods manufactured Cost of goods Income statement Total Estimate Overhead- $600.000 Quantity to be produced- 50,000 Selling Price-3 times unit cost Required: ESTIMATED UNIT COST 201 ESTIMATED SELLING PRICE PREDETERMINED OVERHEAD RATE Product- A 1. UNIT DIRECT MATERIALS COST DIRECT MATERIALS QUANTITY PER UNIT LINIT COST