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 $250,000. During the past year, actual plantwide overhead was $238,000. 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 BBudgeted department overhead (excludes plantwide overhead)$143,000 $688,500 Actual department overhead 162,000 706,500 Expected total activity: Direct labor hours 52,000 15,000 Machine-hours 11,000 51,000 Actual activity: Direct labor hours 52,500 13,500 Machine-hours 11,700 53,000

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$20,500 Direct labor cost: Department A (2,400 hr) 36,000 Department B (1,200 hr) 10,000 Machine-hours projected: Department A 150 Department B 1,200 Units produced 10,000

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.

Overhead rate:

a-2. What is the expected cost per unit produced for job no. 110?

Manufacturing costs for job 110: