Precision instrument inc. Uses job order costing and applied manufacturing overhead to individual jobs by using predetermined overhead rates. In deparent A overhead is applied on the basis of manufacturing hours, and in department B on the basis of direct labor hours. At the beginning of the current year management made the following budget estimates ad a step toward determining the overhead application status. Dep. A. Dep.B
Direct labor $420,000. $300,000
Man. overhead. $540,000. $412,500
Machine hours. 18,000. 1,900
Direct labor hours. 28,000. 25,000
Production of 4,000 techometers (job no. 399) was started in the middle of January and completed two weeks later the cost records for this job show the following information
Job no.399 (4,000) units of product):
DepA DepB
Cast of materials used on job
$6,800. $4,500
Direct labor cost. $8,100. $7,200
Direct labor hours. 540. 600
Machine hours. 250. 100
Instrictions:
A. determine the overhead rate that should be used for each department in applying over overhead cost to job number 399
B. what is the total cost of job number 399 and what is the unit cost of the product manufactured on this production order
C. prepare the journal entry is required to record the salaccount account of a thousand of ttachometersers and ski craft boats the total sales price was $19500
D.assume that actual overhead costs for the year were $517 thousand in department A in dept B $424,000 lactual machine hours in department A were 17,000and dept B were 26,000 during the year. On thebasiss of this information determine the overhead w
Or under applied overhead it in each department for the year