1.
Direct labor cost = $160
Direct labor rate = $16 per hour
Direct labor hours = Direct labor cost/ Direct labor rate
= 160/16
= 10
Predetermined overhead rate = $24 per direct labor hour
Overhead applied to Job A - 200 = Direct labor hours x Predetermined overhead rate
= 10 x 24
= $240
Job Cost Sheet (Job A-200) | |
Direct materials | 230 |
Direct labor | 160 |
Overhead applied | 240 |
Total manufacturing cost | $630 |
2.
Average cost = Total manufacturing cost / Number of units
= 630/60
= $10.50 per unit
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