Job-Order Costing: Calculating Unit Product Costs EXERCISE 2-8 Applying Overheed Cost: Computing Unit Product Cest LO2-2, L02-3 Newhard Company assigns overhead cost to jobs on the basis of 125% of direct labor cu L The job cost shoet for Job 313 includes $10,000 in direct materials cost and $12.000 in direct labor cost. A total of 1,000 units were produced in Job 313 Required What is the sotal manufacturing cost assignod to Job 3137 What is the unit product cost for Job 313? EXERCISE 2-9 Job-Order Costing and Decision Making LO2-1, LO2-2, LO2-3 Taveras Corporation is currently operating at 50% of its available manufacturing apacity a job-order costing system with a plantwide predetermined overhead rate bsed on machine-hours. At the beginning of the year, the compamy made the following estimates required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhe ad cost per machine-hou 165,000 1,980,000 $2.00 Required 1. Compate the plantwide predetermined overhead rate. 2. During the year, Job P90 was started, completed, and sold to the customer for $2.500. The following information was available with respect to this job: Direct materials Direct later cost Machine-hours used $1,150 $830 72 Compute the total manufacturing cost assigned to Job P90 financial officer said "If this exact same opportunilty walked through our froat door tomornow. a Construct an argument (supported by numerical analysis) that refutes the chief financial b. Construct an argument (accompanied by numerical analysis) that supports the chief 3. Upon comparing Job P90' s sales revenue to its total manufacturing cost, the company's chicf officer's assertion financial officer's assertion. EXERCISE 2-10 Applying Overhead Cost to a Job LO2-2 Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $5,000 for direct materials, $8,000 for direct labor, and $6,000 for overhead on its job cost sheet. Job W, which is still in pro- cess at year-end, shows charges of $2,500 for direct materials and $4,000 for direct labor Required 1. Should any overhead cost be applied to Job W at year-end? If so, how mach? Explain. 2. How will the costs included in Job W"s job cost sheet be reported within Sigma Corporation's financial statements at the end of the year? EXERCISE 2-11 Varying Plantwide Predetermined Overhead Rates L02-1, LO2-2, LO2-3 Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be prodaced as the allocation base. Its estimated costs, by quarter, for the coming year are given below Quarter Third Fourth Direct materials Direct labor Manufacturing overhead Total manufacturing costs (a) Number of units to be produced (o) Estimated unit product cost (a) (o)... First Second Thin .$240,000 $120000 $ 60,000 $180.000 300,000 220,000 180.000 $668.000 $404,000 $272.000 128,000 64,000 32,000 96.000 80,000 40,000 20,000 60,000 . $8.35 $10.10 $13.60