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Problem - At the end of April, Cavy Company had completed Job 766 and 765. Job 766 is for 675 units, and Job 765 is for 900 units. According to the individual job cost sheets the information is as follows:
Job
Direct Materials
Direct Labor
Machine Hours
Job 765
$5,670
$3,500
27
Job 766
$8,900
$4,775
44
Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $200 per hour, determine the (a) balance on the job cost sheets for each job, and (b) the cost per unit at the end of April.
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