Obermeyer Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on 10,000 direct labor-hours, total fixed manufacturing overhead cost of $96,000, and a variable manufacturing overhead rate of $3.60 per direct labor-hour. Job A735, which was for 40 units of a custom product, was recently completed. The job cost sheet for the job contained the following data:
Required:
a. Calculate the amount of overhead applied to Job A735.
b. Calculate the total job cost for Job A735.
c. Calculate the unit product cost for Job A735.

Question

Obermeyer Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on 10,000 direct labor-hours, total fixed manufacturing overhead cost of $96,000, and a variable manufacturing overhead rate of $3.60 per direct labor-hour. Job A735, which was for 40 units of a custom product, was recently completed. The job cost sheet for the job contained the following data:
  Required:
a. Calculate the amount of overhead applied to Job A735.
b. Calculate the total job cost for Job A735.
c. Calculate the unit product cost for Job A735.

Quizplus · Accepted Answer

The Answer of Obermeyer Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on 10,000 direct labor-hours, total fixed manufacturing overhead cost of $96,000, and a variable manufacturing overhead rate of $3.60 per direct labor-hour. Job A735, which was for 40 units of a custom product, was recently completed. The job cost sheet for the job contained the following data:
  Required:
a. Calculate the amount of overhead applied to Job A735.
b. Calculate the total job cost for Job A735.
c. Calculate the unit product cost for Job A735.

Obermeyer Corporation Uses a Job-Order Costing System with a Single