The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Falls, Minnesota, uses a job order costing system for its batch production processes. The St. Falls plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant managers salary, accounting personnel, cafeteria, and human resources, is budgeted at $250,000. During the past year, actual plantwide overhead was $240,000. Each departments overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Falls plant for the past year are as follows.

Department A

Department B

Budgeted department overhead

(excludes plantwide overhead)

$

150,000

$

600,000

Actual department overhead

160,000

620,000

Expected total activity:

Direct labor hours

35,000

15,000

Machine-hours

10,000

40,000

Actual activity:

Direct labor hours

51,000

9,000

Machine-hours

10,500

42,000

For the coming year, the accountants at St. Falls 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	$	25,000
Direct labor cost:
Department A (2,200 hr)		45,000
Department B (800 hr)		10,000
Machine-hours projected:
Department A		200
Department B		1,200
Units produced		10,000

Required:

a-1. Assume the St. Falls plant uses a single plantwide overhead rate to assign all overhead (plantwide and department) costs to jobs. Find the overhead rate by using expected direct labor hours.

a-2. Determine the projected amount of total manufacturing costs per unit for the units in job no. 110.