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During the Year, Job EH-02 for 500 Units Was Begun

Question 64

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During the year, Job EH-02 for 500 units was begun and completed. Costs entered on the job order cost sheet for this job were $15,400 for materials and $6,500 for labor. The firm applies overhead at the rate of 75 percent 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. $4,875;...

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