Parker Corporation uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours.Last year manufacturing overhead and direct labor-hours were estimated at $50, 000 and 20, 000 hours, respectively, for the year.In June, Job #461 was completed.Materials costs on the job totaled $4, 000 and labor costs totaled $1, 500 at $5 per hour.At the end of the year, it was determined that the company worked 24, 000 direct labor-hours for the year and incurred $54, 000 in actual manufacturing overhead costs.
Required:
a.Job #461 contained 100 units.Determine the unit product cost that would appear on the job cost sheet.
b.Determine the underapplied or overapplied overhead for the year.

Question

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The Answer of Parker Corporation uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours.Last year manufacturing overhead and direct labor-hours were estimated at $50, 000 and 20, 000 hours, respectively, for the year.In June, Job #461 was completed.Materials costs on the job totaled $4, 000 and labor costs totaled $1, 500 at $5 per hour.At the end of the year, it was determined that the company worked 24, 000 direct labor-hours for the year and incurred $54, 000 in actual manufacturing overhead costs.
Required:
a.Job #461 contained 100 units.Determine the unit product cost that would appear on the job cost sheet.
b.Determine the underapplied or overapplied overhead for the year.

Parker Corporation Uses a Job-Order Costing System and Applies Manufacturing