Overhead | Accounting homework help

1.      EXERCISE 3–10 Applying Overhead; Computing Unit Product Cost [LO2, LO3]

A company assigns overhead cost to completed jobs on the basis of 120% of direct labor cost. The job cost sheet for Job 413 shows that $12,000 in direct materials has been used on the job and that $8,000 in direct labor cost has been incurred. A total of 200 units were produced in Job 413.

Required:

What is the total manufacturing cost assigned to Job 413? What is the unit product cost for Job 413?

(check figure unit production cost 148)

1.      2. Why do companies use a predetermined overhead rate rather than actual overhead costs to apply overhead to jobs?

1.      EXERCISE 3–10 Applying Overhead; Computing Unit Product Cost [LO2, LO3]

A company assigns overhead cost to completed jobs on the basis of 120% of direct labor cost. The job cost sheet for Job 413 shows that $12,000 in direct materials has been used on the job and that $8,000 in direct labor cost has been incurred. A total of 200 units were produced in Job 413.

Required:

What is the total manufacturing cost assigned to Job 413? What is the unit product cost for Job 413?

(check figure unit production cost 148)

1.      2. Why do companies use a predetermined overhead rate rather than actual overhead costs to apply overhead to jobs?