Question
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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