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JOB-ORDER COSTING (20 points) James Graham Manufacturing is a small manufacturer that uses machine-hours as its activity base for assigned overhead costs to jobs. The
JOB-ORDER COSTING (20 points) James Graham Manufacturing is a small manufacturer that uses machine-hours as its activity base for assigned overhead costs to jobs. The company estimated the following amounts for 2019 for the company, for Job 62 and Job 63: Company $60,000 $25.000 $72.000 Job 62 $4,500 $2,500 Job 63 $7,100 $4,200 Direct materials Direct labor Manufacturing overhead costs Machine hours 90,000 1,350 3,100 During 2019, the actual machine-hours totaled 95,000, and actual overhead costs were $71,000. Job 62 consisting of 1,000 units and Job 63 consisting of 2000 units were completed during the month. Instructions: a) Compute the predetermined overhead rate. (2 points) b) Compute the total manufacturing costs for Job 62 and Job 63. (5 points) c) Compute the unit cost of Jobs 62 and 63. (3 points) d) How much overhead is over or underapplied for the year for the company? State amount and whether it is over- or underapplied. (5 points) e) If Graham Manufacturing sells Job 62 for $14,000 and $18,000 for Job 63, compute the gross profit. (5 points)
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