D company uses a job-order costing system with a single predetermined overhead r
ID: 2329815 • Letter: D
Question
D company uses a job-order costing system with a single predetermined overhead rate based on direct labor hours. The predetermined overhead rate is based on the following data:
Total direct labor hours 70,000
Total fixed overhead cost 273,000
Variable manufacturing overhead per direct labor hour $6.00
Job 924 was recently completed with the following characteristics.
Number of units produced 50
Total direct labor hours 100
Direct materials $680
Direct labor cost $7,000
Complete the following table to calculate the unit product cost for Job 924:
Account
Amount
Calculations
Total fixed manufacturing overhead cost
+ Total variable manufacturing overhead cost
Total manufacturing overhead cost
/ Direct labor hours
Predetermined overhead rate
Direct materials
Direct labor
Manufacturing overhead applied
Total cost of Job 924
Total cost of Job 924
From calculation above
/ Number of units produced
Unit product cost for Job 924
Account
Amount
Calculations
Total fixed manufacturing overhead cost
+ Total variable manufacturing overhead cost
Total manufacturing overhead cost
/ Direct labor hours
Predetermined overhead rate
Direct materials
Direct labor
Manufacturing overhead applied
Total cost of Job 924
Total cost of Job 924
From calculation above
/ Number of units produced
Unit product cost for Job 924
Explanation / Answer
Complete the following table to calculate the unit product cost for Job 924 Account Amount Calculations Total Fixed Manufacturing OH Cost $273,000 Assumed it is the fixed manufacturing OH cost in absence of information as it says in the question Total Fixed Overhead cost. + Total Variable Manufacturing OH Per DLH $6.00 Total DLH 70,000 Total VMOH $420,000 Direct Labour Hrs 70000 Predetermine OH Rate 9.9 ($273000+$420000)/70000 Direct Materials $680 Direct Labour $7,000 Manufacturing OH applied $990 100 hrs at the rate of predetermined rate of 9.9 Total cost of Job 924 $8,670 Total Cost of Job 924 $8,670 From calculation as above No of units Produced 50 Unit Product Cost for Job 924 $173.40
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