Haslett Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,800 units of Product B was received. The standard cost of one unit of Product B is as follows.
Direct materials 2 pounds at $1.50 per pound = $ 3.00
Direct labor 2.00 hour at $9 per hour = 18.00
Overhead 2 hours (variable $4.50 per machine hour; fixed $2.50 per machine hour) =14.00
Standard cost per unit $35.00
Normal capacity for the month was 4,240 machine hours. During January, the following transactions applicable to Job No. 12 occurred.
1. Purchased 3,996 pounds of raw materials on account at $1.57 per pound.
2. Requisitioned 3,996 pounds of raw materials for Job No. 12.
3. Incurred 3,726 hours of direct labor at a rate of $8.91 per hour.
4. Worked 3,726 hours of direct labor on Job No. 12.
5. Incurred manufacturing overhead on account $33,730.
6. Applied overhead to Job No. 12 on basis of standard machine hours allowed.
7. Completed Job No. 12.
8. Billed customer for Job No. 12 at a selling price of $138,600.