If JOB 101 contained 100 units what would be the unit cost   2. What would be the under or over applied factory overhead in sewing department at the end of the year   3. What would be the under or over applied factory overhead in cutting department at the end of the yea

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter16: Job Order Costing
Section: Chapter Questions
Problem 1CMA: Baldwin Printing Company uses a job order cost system and applies overhead based on machine hours. A...
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4. 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 Sewing department is based on machine hours and in Cutting department is based on direct labor cost. The following estimates are made at the beginning of the year:

                                                                        Sewing                                  Cutting

Direct labor hours                                          24,000                                 120,000

Machine hours                                             140,000                                   10,000

Direct material cost                                   1,020,000                             1,300,000

Direct labor cost                                           260,000                                840,000

FOH Cost                                                    1,204,000                            1,470,000

Job 101 was started on February 1 and completed on February 25. The company’s cost records show the following information concerning the job.

                                                                          Sewing                               Cutting

Direct labor hours                                            60                                        170

Machine hours                                                 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 jobs worked during the year:

                                                                       Sewing                                Cutting

Direct labor hours                                            20,000                           124,000

Machine hours                                               130,000                             18,000

Direct Material cost                                       860,000                       1,360,000

Direct labor cost                                             216,000                          872,000

FOH cost                                                      1,140,000                      1,500,000

 

 

1.  If JOB 101 contained 100 units what would be the unit cost

 

2. What would be the under or over applied factory overhead in sewing department at the end of the year

 

3. What would be the under or over applied factory overhead in cutting department at the end of the year

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