Reference no: EM13940446

1. Camp Company uses a job-order costing system. The company has two departments through which most jobs pass. Selected budgeted and actual data for the past year follow:
Department A
Department B
Budgeted overhead
$100,000
$500,000
Actual overhead
$110,000
$520,000
Expected activity (direct labor hours)
50,000
10,000
Expected machine hours
10,000
50,000
Actual direct labor hours
51,000
9,000
Actual machine hours
10,500
52,000
During the year, several jobs were completed. Data pertaining to one such job follows:
Job 310
Direct materials
$20,000
Direct labor cost:
Department A (5,000 hours @ $6)
$30,000
Department B (1,000 hours @ $6)
$ 6,000
Machine hours used:
Department A
100
Department B
1,200
Units produced
10,000
Camp Company uses a plant-wide predetermined overhead rate to assign overhead to jobs. Direct labor hours (DLH) is used to compute the predetermined overhead rate.
(1) Compute the predetermined overhead rate.
(2) Using the predetermined rate, compute the per-unit manufacturing cost of Job 310.
(3) Recalculate the unit manufacturing cost for Job :310 using departmental overhead rates.
Use direct labor hours for Department A and machine hours for Department B.