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1.
Westan Corporation uses a predetermined overhead rate of $23.10 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $277,200 of total manufacturing overhead for an estimated activity level of 12,000 direct labor-hours.
The company incurred actual total manufacturing overhead costs of $266,000 and 12,600 total direct labor-hours during the period.
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Required: |
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Determine the amount of manufacturing overhead that would have been applied to all jobs during the period. |
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2. Kirkaid Company recorded the following transactions for the just completed month: |
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$84,000 in raw materials were requisitioned for use in production. Of this amount, $72,000 was for direct materials and the remainder was for indirect materials. |
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Total labor wages of $108,000 were incurred. Of this amount, $105,000 was for direct labor and the remainder was for indirect labor. |
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Additional actual manufacturing overhead costs of $197,000 were incurred. |
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A total of $218,000 in manufacturing overhead was applied to jobs. |
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3. A company assigns overhead cost to completed jobs on the basis of 120% of direct labor cost. The job cost sheet for Job 413 shows that $12,000 in direct materials has been used on the job and that $8,000 in direct labor cost has been incurred. A total of 200 units were produced in Job 413. |
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What is the total manufacturing cost assigned to Job 413? |
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What is the unit product cost for Job 413? |
