Question

ework #1 due Tuesday/Wednesday, February nesday, February 4th/5th - 10 points leted. The following data have been recorded on *A. Job 599 was recently completed. its job cost sheet: Direct materials. Direct labor-hours................. Direct labor wage rate.............. Number of units completed......... $40,610 1,147 DLHS $11 per DLH 3.100 units The company applies manufacturing overhead on the hours. The predetermined overhead rate! acturing overhead on the basis of direct labor- determined overhead rate is $20 per direct labor-hour. Required: Compute the unit product cost that would appear on the job cost sheet for this job.

Answer 1

Predetermined overhead rate = $20 per direct labor hour

Actual direct labor hours = 1,147 hours

Applied manufacturing overhead = Actual direct labor hours x Predetermined overhead rate

= 1,147 x 20

= $22,940

Job Cost Sheet ( Job 599)
Direct materials	40,610
Direct labor ( 1,147 x 11)	12,617
Applied manufacturing overhead	22,940
Total Cost	$76,167

Unit product cost = Total cost/Number of units

= 76,167/3,100

= $24,57

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