Question

Job Cost Sheet
JOB NO.		469		Quantity		2,000
ITEM		White Lion Cages		Date Requested		7/2
FOR		Todd Company		Date Completed		7/31
Date		Direct Materials		Direct Labor		Manufacturing Overhead
7/10		700
12		900
15				500		600
22				300		360
24		1,620
27		1,540
31				700		840

(2) Overhead is applied on the basis of direct labor cost. What is the predetermined manufacturing overhead rate?

(3) What are the total cost and the unit cost of the completed job? (Round unit cost to 2 decimal places, e.g. 1.25.)

Answer 1

2)Total overhead applied to Job =600 +360 +840 =1800

Total direct labor cost = 500 + 300+700 = 1500

predetermined manufacturing overhead rate = Overhead applied /direct labor cost

                        = 1800 /1500

                       = 1.2 or 120% of direct labor cost .

3)

Direct material (700+900+1620+1540)	4760
Direct labor	1500
Overhead applied	1800
Total cost of Job	8060
Number of units	2000
Unit cost	8060/2000 =$ 4.03