In: Accounting
At the end of April, Cavy Company had completed Jobs 766 and
765. The individual job cost sheets reveal the following
information:
JobDirect MaterialsDirect LaborMachine Hours
Job 765$10,920 $3,276 39
Job 76614,706 4,644 86
Job 765 produced 234 units, and Job 766 consisted of 344 units.
Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $135 per hour.
a. Determine the balance on the job cost sheets for each job.
Job 765$
Job 766$
b. Determine the cost per unit at the end of April. Round your answers to the nearest cent.
Job 765$
Job 766$
a.
Balance on the job cost sheets for each job.
Job 765$ = $19,461
Job 766$ = $30,960
b.
Cost per unit at the end of April.
Job 765$ = $83.17
Job 766$ = $90.00
Step by step explanation:
It is given that,
Manufacturing overhead rate is applied by using machine hours at a
rate of $135 per hour
Machine hours:
Job 765 = 39 hours
Job 766 = 86 hours
Hence,
Manufacturing overhead applied:
Job 765 = 39 × $135 = $5,265
Job 766 = 86 × $135 = $12,610
Cost per unit:
Cost per unit = Total job cost / Number of units produced
Total job cost:
Job 765 = $19,461
Job 766 = $30,960
Number of units produced
Job 765 = 234 units
Job 766 = 344 units
Cost per unit:
Job 765 = $19,461/234 = $83.17
Job 766 = $30,960/344 = $90.00