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During the Year, Job EH-02 for 900 Units Was Started

Question 89

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During the year, Job EH-02 for 900 units was started and completed. Costs entered on the job order cost sheet for this job were $19,600 for materials and $10,135 for labor. The firm applies overhead at the rate of 70% of direct labor costs.
1. What is the amount of overhead that should be applied to the job?
2. What is the total cost of the job?
3. What is the unit cost of the units produced?

Correct Answer:

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1. $7,094....

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