Job Order Costing NEED ANSWER FOR BLODED QUESTION To keep records of the actual

Question

Job Order Costing NEED ANSWER FOR BLODED QUESTION To keep records of the actual cost of a special order job, a Job Order Cost System has been developed. Overhead is applied at the rate of 50% of the direct labor cost. Job Order Costing Section On January 1, 20x2, Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,125 Lamp Kits @ $16.40 per kit. 9-Jan 4,100 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 570 Direct Labor Hours @ $9.45 per hour. 30-Jan Payroll of 620 Direct Labor Hours @ $9.70 per hour. 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing. Month End Overhead Information Actual Variable Manufacturing Overhead $   1,213.80 Actual Fixed Manufacturing Overhead $ 39,623.45 Round to two places, $##.## Cost of Direct Material Incurred in Manufacturing Job 2407 16.40 * 4100 $                67,240.00 Cost of Direct Labor Incurred in Manufacturing Job 2407 570*945 + 620 * 9.70 $                11,400.50 Cost of Manufacturing Overhead Applied to Job 2407 11,400.50 2 $                   5,700.25 Cost of manufacturing one lamp Job Order Costing NEED ANSWER FOR BLODED QUESTION To keep records of the actual cost of a special order job, a Job Order Cost System has been developed. Overhead is applied at the rate of 50% of the direct labor cost. Job Order Costing Section On January 1, 20x2, Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,125 Lamp Kits @ $16.40 per kit. 9-Jan 4,100 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 570 Direct Labor Hours @ $9.45 per hour. 30-Jan Payroll of 620 Direct Labor Hours @ $9.70 per hour. 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing. Month End Overhead Information Actual Variable Manufacturing Overhead $   1,213.80 Actual Fixed Manufacturing Overhead $ 39,623.45 Round to two places, $##.## Cost of Direct Material Incurred in Manufacturing Job 2407 16.40 * 4100 $                67,240.00 Cost of Direct Labor Incurred in Manufacturing Job 2407 570*945 + 620 * 9.70 $                11,400.50 Cost of Manufacturing Overhead Applied to Job 2407 11,400.50 2 $                   5,700.25 Cost of manufacturing one lamp

Explanation / Answer

The job cost sheet is shown below:

Overhead Variance

= Total Overhead Incurred - Overhead Applied

= $ 1,213.80 + $ 39,623.45 - $ 5,700.25

= $ 35,137.00

So, cost of manufacturing one Lamp is $ 29.95.

Particulars Amount $ Per unit cost(3990 units) $ Direct Material Incurred 67,240.00 16.85 Direct Labor Incurred 11,400.50 02.86 Manufacturing Overhead Applied 5,700.25 01.43 Sub Total 84,340.75 21.14 Add: Overhead Variance 35,137.00 08.81 Total Cost for Manufacture 119,477.75 29.95

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