Compute for the total over/(under)- applied factory overhead at the end of the year.
Compute the unit cost of Job 101 assuming it contained 200 units.
Peter co makes shirts that it sells to retailers. The company uses a job order costing system in which predetermined overhead rates are used to apply factory overhead cost to jobs. The predetermined rate in the cutting department is based on machine hours and in sewing department is based on direct labor cost. The following estimates are made at the beginning of the year:
Extracted text: Sewing 24,000 Cutting 120,000 Direct Labor Hours Machine Hours Direct Material Cost Direct Labor Cost 140,000 1,020,000 260,000 1,204,000 10,000 1,300,000 840,000 1,470,000 Factory Overhead Cost Job 101 was started on Feb 1 and completed on Feb 25. The company's cost records show the following information concerning the job. Sewing Cutting Direct Labor Hours Machine Hours 60 170 220 40 Material Used 940 664 Direct Labor Cost 580 1,360 At the end of the year, the records of the company show the actual cost and data for all the jobs worked during the year. Sewing 20,000 Cutting 124,000 Direct Labor Hours Machine Hours 130,000 18,000 Direct Material Cost 860,000 216,000 1,140,000 1,360,000 872,000 1,500,000 Direct Labor Cost Factory Overhead Cost