Precision Instruments, Inc., uses job order costing and applies manufacturing overhead to individual jobs by using predetermined overhead rates. In Department A, overhead is applied on the basis of machine-hours, and in Department B, on the basis of direct labor hours. At the beginning of the current year, management made the following budget estimates as a step toward determining the overhead application rates:

	Department A		Department B
Direct labor	$	420,000	$	300,000
Manufacturing overhead	$	540,000	$	412,500
Machine-hours		18,000		1,900
Direct labor hours		28,000		25,000

Production of 4,000 tachometers (job no. 399) was started in the middle of January and completed two weeks later. The cost records for this job show the following information:

	Department A			Department B
Job no. 399 (4,000 units of product):
Cost of materials used on job	$	6,800		$	4,500
Direct labor cost	$	8,100		$	7,200
Direct labor hours		540			600
Machine-hours		250			100

Instruction

a.

Determine the overhead rate that should be used for each department in applying overhead costs to job no. 399. (Round your answers to 2 decimal places.)

b.

What is the total cost of job no. 399, and what is the unit cost of the product manufactured on this production order? c. Prepare the journal entries required to record the sale (on account) of 1,000 of the tachometers to SkiCraft Boats. The total sales price was $19,500. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)