Question

Could you please explain step by step how to resolve this problem? Please don't send me the one that is already posted, I want a new explanation.

Thank you.

At the end of the month, the M&M Company had completed Job Red and Job Yellow. The individual job cost sheets reveal the following information:

Job	Direct Materials	Direct Labor	Machine Hours
Job Red	$6,720	$2,016	24
Job Yellow	12,966	4,104	76

​

Job Red produced 144 units, and Job Yellow consisted of 228 units.

Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $142 per hour, determine the (a) balance on the job cost sheets for each job and (b) the cost per unit at the end of April.

Answer 1

Predetermined overhead rate = $ 142 per hours

Overhead applied for each job = Machine hours * Predetermined overhead rate

Calculation of Overhead applied
	Machine hours (a)	overhead rate (b)	Overhead cost (a * b)
Job Red	24	142	3,408
Job Yellow	76	142	10,792
Total Balance on Job cost sheet = Direct material + Direct Labour + Overhead Cost
a . Balance on the job Cost Sheet for each job
	Direct Material (a)	Direct Labour ( b)	Overhead cost (c)	Total Cost ( a+b+c)
Job Red	6,720	2,016	3,408	12,144
Job Yellow	12,966	4,104	10,792	27,862
Cost per unit = Total Cost / Total units
b . Cost per unit
	Total Cost (a)	Total Units ( b)	Cost per unit ( a / b )
Job Red	12,144	144	84.33
Job Yellow	27,862	228	122.20

~~~ Dear student, Please upvote the answer if it helps. Thankyou.