At the end of April, Cavy Company had completed Jobs 766 and 765. According to the individual job cost sheets the information is as follows:Job
Question:
Job 765 $6,720 $2,016 24
Job 766 $12,141 $3,834 71
Job 765 consisted of 144 units, and Job 766 consisted of 284 units. Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $127 per hour. Determine the:
a. balance on the job cost sheets for each job
b. the cost per unit at the end of April.
Answers
a)
Job Direct Materials Direct Labor overhead Total Job cost
Job 765 $6,160 $1,848 $3,366 $11,374
Job 766 $10,944 $3,456 $9,792 $24,192
b)
For Job 765 = $86.167
For Job 765 = $126
Explanation:
Data provided in the question:
Job Direct Materials Direct Labor Machine Hours
Job 765 $6,160 $1,848 22
Job 766 $10,944 $3,456 64
Overhead rate = $153 per hour
Job 765 consisted = 132 units
766 consisted = 192 units
now,
Overhead = Machine Hours × Overhead rate
For Job 765 = 22 × 153
= $3366
For Job 766 = 64 × 153
= $9792
Total job cost i.e balance on the job cost sheets
= Direct Materials + Direct Labor + overhead
a)
Job Direct Materials Direct Labor overhead Total Job cost
Job 765 $6,160 $1,848 $3,366 $11,374
Job 766 $10,944 $3,456 $9,792 $24,192
b)
Cost per unit = [ Total job cost ] ÷ Total units
For Job 765 = $11,374 ÷ 132
= $86.167
For Job 765 = $24,192 ÷ 192
= $126
Instructions are below.
Explanation:
Giving the following information:
Job 765:
Direct material= $5,670
Direct labor= $3,500
Machine Hours= 27
Job 766:
Direct material= $8,900
Direct labor= $4,775
Machine Hours= 44
Job 765 produced 152 units, and Job 766 consisted of 250 units.
Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $200 per hour.
Costs sheet:
Job 765:
Direct material= 5,670
Direct labor= 3,500
Allocated overhead= 200*27= 5,400
Total cost= 14,570
Unitary cost= 14,570/152= $95.85
Job 766:
Direct material= 8,900
Direct labor= 4,775
Allocated overhead= 200*44= 8,800
Total cost= 22,475
Unitary cost= 22,475/250= $89.9
Ibelieve that the answer is d. because that is the only option that is efficient.
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