Longwood Industries uses a job-order cost system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor hours.
The estimated MOH was $136,000 for the year and the estimated direct labor hours were 16,000 hours.
In June, Job #325 was completed. Direct materials totaled $6,000. Total labor costs were $5,000 at $10 per hour.
At the end of the year, it was determined that the company worked 15,000 direct labor hours for the year, and incurred $139,000 in actual manufacturing overhead costs.
REQUIRED:
a.Calculate the predetermined overhead rate for the year.
b.Determine the amount of overhead charged to jobs during the year.
c.Determine the amount of under- or over-applied overhead for the year.
d.Prepare a job cost sheet for Job #872 using the information given. Assuming that 80 units were completed, determine the unit product cost.