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Job order costing; rework Canyon City Co. uses a job order costing system that combines actual direct material and actual direct labor costs with a
Job order costing; rework Canyon City Co. uses a job order costing system that combines actual direct material and actual direct labor costs with a predetermined overhead charge based on machine hours. Expected overhead and machine hours of $852,600 and 87,000, respectively, were used in developing the predetermined rate for the year. During the year, the company worked on Job #876 and incurred the following costs and machine hours: Direct material $28,500 Direct labor $13,080 Machine hours 195 a. 1. What is the total cost of Job #8767 $ 2. What is the cost per unit i 900 were made? Note: Round your answer to two decimal places, $ 0 b. In completing Job #876, 18 units were defective and had to be reworked at a cost of $25 each. Assume that spoilage and rework costs were included in the original estimated overhead costs. Where does the $450 rework cost appear in the accounts of Canyon City Co.? Manufacturing Overhead Control c. Disregard the facts in (b). Upon completing Job #876, the quality control inspector determined that 18 units were spoiled and would be unacceptable to the customer. Eighteen additional good units were made at a total cost of $834. The spoiled units were sold for $144 as "seconds" to an outlet store. What is the total cost of Job #876? $ 0 X
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