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Job-Order Costing U-Design-It Furniture Company uses a job-order cost system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct

Job-Order Costing

U-Design-It Furniture Company uses a job-order cost system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor hours. The estimated MOH was $144,000 for the year and the estimated direct labor hours were 18,000 hours.

In March, Job #175 was completed. Direct materials totaled $7,000. Total labor costs were $6,000 at $20 per hour.

At the end of the year, it was determined that the company worked 17,000 direct labor hours for the year, and incurred $132,000 in actual factory overhead costs.

REQUIRED:

1. Calculate the predetermined overhead rate for the year (1 point):

2. Determine the amount of overhead charged to all the jobs for the company during the year (1 point):

3. Determine the total amount of under- or over-applied overhead for all the jobs in the year (1 point):

4. Prepare a job cost sheet for Job #175 using the information given above. Assuming that 30 units were completed, determine the unit product cost. (3 points)

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