Question
Liam Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for
Liam Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:
Total machine-hours | 50,000 |
Total fixed manufacturing overhead cost | $ 460,000 |
Variable manufacturing overhead per machine-hour | $ 3.10 |
Recently Job P647 was completed with the following characteristics:
Number of units in the job | 50 |
Total machine-hours | 150 |
Direct materials | $ 740 |
Direct labor cost | $ 6,000 |
Required: a. Calculate the amount of overhead applied to Job P647. b. Calculate the total job cost for Job P647. c. Calculate the unit product cost for Job P647.
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