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Required information Comprehensive Problem 5 ( Algo ) Skip to question [ The following information applies to the questions displayed below. ] The Gilster Company,

Required information
Comprehensive Problem 5(Algo)
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[The following information applies to the questions displayed below.]
The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job order costing system for its batch production processes. The St. Cloud plant has two departments through which most jobs pass. Plant-wide overhead, which includes the plant managers salary, accounting personnel, cafeteria, and human resources, is budgeted at $400,000. During the past year, actual plantwide overhead was $385,000. Each departments overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Cloud plant for the past year are as follows.
Department A Department B
Budgeted department overhead
(excludes plantwide overhead) $ 153,000 $ 439,900
Actual department overhead 170,000459,900
Expected total activity:
Direct labor hours 50,00025,000
Machine-hours 15,00053,000
Actual activity:
Direct labor hours 50,50023,900
Machine-hours 15,80055,000
For the coming year, the accountants at the St. Cloud plant are in the process of helping the sales force create bids for several jobs. Projected data pertaining only to job no.110 are as follows.
Direct materials $ 21,600
Direct labor cost:
Department A (3,000 hr)45,000
Department B (1,100 hr)10,000
Machine-hours projected:
Department A 230
Department B 1,200
Units produced 15,000
Comprehensive Problem 5(Algo) Part a
Required:
a-1. Assume the St. Cloud plant uses a single plantwide overhead rate to assign all overhead (plantwide and department) costs to jobs. Use expected total direct labor hours to compute the overhead rate.
a-2. What is the expected cost per unit produced for job no.110?

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