Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger

Exercise 24

Job Cost Flows
Roseler Company uses a normal job-order costing system. The company has two departments through which most jobs pass. Overhead is applied using a plantwide overhead rate of $10 per direct labor hour. During the year, several jobs were completed. Data pertaining to one such job, Job 9-601, follow:

Required:
1. Compute the total cost of Job 9-601.
2. Compute the per-unit manufacturing cost for Job 9-601.
For Requirements 3 and 4, assume that Roseler uses departmental overhead rates. In Department A, overhead is applied at the rate of $3 per direct labor hour. In Department B, overhead is applied at the rate of $7 per machine hour.
3. Compute the total cost of Job 9-601.
4. Compute the per-unit manufacturing cost for Job 9-601.