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Ched Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhea
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Answer #1
Unit product cost    [Refer working note 1] $2,552

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Working note 1 - Calculation of unit product cost
Direct material cost $14,500
Direct labor cost $12,700
Total overhead allocated   [Refer working note 2] $49,360
Total cost                            [$14,500 + $12,700 + $49,360] $76,560
Total units 30
Unit product cost                 [Total cost / Units produced = $76,560 / 30 units]   $2,552

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Working note 2 - Calculation of total overhead allocated to Job Q
Job Q
Molding department:
     Actual machine-hours used                                                               (a) 2,100
     Departmental overhead rate [Refer working note 3]                        (b) $8.00
     Overhead allocated                                                                           (c = a x b) $16,800
Fabrication department:
     Actual machine-hours used                                                               (d) 2,200
     Departmental overhead rate [Refer working note 3]                        (e) $14.80
     Overhead allocated                                                                           (f = d x e) $32,560
Total overhead allocated                                                                          ( c + f) $49,360

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Working note 3 - Calculation of departmental overhead rate
Molding Fabrication
Estimated fixed manufacturing overhead                                               (a) $13,250 $16,950
Estimated machine-hours used                                                               (b) 2,500 1,500
Estimated fixed manufacturing overhead per machine hour                   (c = a / b) $5.30 $11.30
Estimated variable manufacturing overhead per machine-hour               (d) $2.70 $3.50
Departmental overhead rate                                                                    (c + d) $8.00 $14.80
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