Question
Production begins in the Printing department and is completed in the Finishing Department. Overhead is applied based on direct-labor cost in the Making Department and
Production begins in the Printing department and is completed in the Finishing Department.
Overhead is applied based on direct-labor cost in the Making Department and machine hours in Finishing Department.
The following annual budgeted information is available:
Making Finishing
Direct-labor cost $180,000 $165,000
Machine hours 51,000 40,000
Expected Annual MOH $225,000 $180,000
During June, the job cost sheet showed the following costs and production data for Job:
Making Finishing
Direct materials $10,000 $16,000
Direct-labor cost $11,000 $14,000
Machine hours 5,000 3,000
Required:
a) Compute the pre-determined overhead (POHR) for the Printing Department.
b) Compute the pre-determined overhead (POHR) for the Finishing Department.
c) What is the total manufacturing overhead cost of Job?
d) If Job consists of 50 units, what is the total manufacturing cost and cost per unit of this job?
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