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Sally Company uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labour hours (DLH). Last year, manufacturing overhead and direct labour 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 totalled $4,000, and labour costs totalled $1,500 at $5 per hour. At the end of the year, it was determined that the company worked 24,000 direct labour hours for the year and incurred $54,000 in actual manufacturing overhead costs.
Question a) Job 461 contained 100 units. Determine the unit cost that would appear on the job cost sheet
Question b) Determine the over- or underapplied overhead for the year
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