nment #2 Question 13 of 13 -/10 E View Policies Current Attempt in Progress Sheridan Products Company uses a job order cost system. For a number of months, there has been an ongoing rift between the sales department and the production department concerning a special-order product, TC 1. TC-1 is a seasonal product that is manufactured in batches of 1,000 units. TC-1 is sold at cost plus a markup of 40% of cost. The sales department is unhappy because fluctuating unit production costs significantly affect selling prices. Sales personnel complain that this has caused excessive customer complaints and the loss of considerable orders for TC 1. The production department maintains that each job order must be fully costed on the basis of the costs incurred during the period in which the goods are produced. Production personnel maintain that the only real solution is for the sales department to increase sales in the stack periods Carol Steven, president of the company. asks you as the company accountant to collect quarterly data for the past year on TC 1. From the cost accounting system, you accumulate the following production quantity and cost data. Quarter Costs 2 3 Question 13 of 13 - / 10 ini Carol Steven, president of the company, asks you as the company accountant to collect quarterly data for the past year on TC-1. From the cost accounting system, you accumulate the following production quantity and cost data. Quarter Costs 1 2 3 4 Direct materials $90,000 $210.000 $75.000 $225,000 Direct labor 45.000 135.000 54,000 126.000 216.000 148.920 Manufacturing overhead 195.000 285,000 $360,000 $484.920 $315.000 Total $645.000 14 5 15 Production in batches $34,637 $60.000 $63,000 $43.000 Unit cost (per batch) FOR fel 230 P1 Restate the quarterly data by applying overhead as a set rate per batch Quarter Costs 1 2 3 Direct materials $ $ $ Direct labor Manufacturing overhead Applied 5 5 Total $ Production in batches Unit cost (per batch) 40