Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Direct labor incurred and charged to jobs during the month was:
Job 101 $32,000
Job 103 20,000
Manufacturing overhead was applied to jobs using a predetermined overhead rate based on 75% of direct labor costs.
To apply overhead, we need to use the estimated overhead rate and the actual direct labor cost:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Job 103= 0.75*20,000= $15,000
Job 101= 0.75*32,000= $24,000
Direct materials requisitioned during the month:
Job 101 $20,000
Job 103 24,000
Job 101 consists of 1,000 units and, Job 103 consists of 200 units.
First, we need to calculate the total cost and then the unitary cost:
Total cost= direct material + direct labor + allocated overhead
Job 101:
TC= 20,000 + 32,000 + 24,000= $76,000
Unitary cost= 76,000/1,000= $76
Job 103:
TC= 24,000 + 20,000 + 15,000= $59,000
Unitary cost= 59,000/200= $295
