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 $360,000. During the past year, actual plantwide overhead was $342,000. 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)	$	110,000			$	480,000
Actual department overhead		144,000				500,000
Expected total activity:
Direct labor hours		40,000				20,000
Machine-hours		10,000				48,000
Actual activity:
Direct labor hours		40,500				18,900
Machine-hours		10,800				50,000

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	$	25,500
Direct labor cost:
Department A (2,800 hr)		42,000
Department B (1,500 hr)		8,000
Machine-hours projected:
Department A		180
Department B		1,200
Units produced		10,000

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?