Using the departmental predetermined overhead rates to allocate overhead to jobs
Lands Co. uses departmental predetermined overhead rates for allocating overhead to jobs. The rates are based on machine hours for the Filling department and on direct labor cost for the Packaging department. The company estimated the following for 2011:
Filling Packaging
Manufacturing overhead cost $5,000,000 $4,000,000
Machine hours 250,000 100,000
Direct labor cost $600,000 $2,000,000
During the month of April, the cost record for Job 64 shows:
Filling Packaging
Direct materials $45,000 $35,000
Direct labor cost $6,000 $5,250
Machine hours 1,200 550
Required: a)Assuming the Job 64 manufactured 500 units of product, what is the unit cost of Job 64?
