At the end of April, Cavy Company had completed Job 766 and 765. 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

Job 765 produced 152 units, and Job 766 consisted of 250 units.

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.

Instructions are below.

Explanation:

Giving the following information:

Job 765:

Direct material = $5,670

Direct labor = $3,500

Machine Hours = 27

Job 766:

Direct material = $8,900

Direct labor = $4,775

Machine Hours = 44

Job 765 produced 152 units, and Job 766 consisted of 250 units.

Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $200 per hour.

Costs sheet:

Job 765:

Direct material = 5,670

Direct labor = 3,500

Allocated overhead = 200*27 = 5,400

Total cost = 14,570

Unitary cost = 14,570/152 = $95.85

Job 766:

Direct material = 8,900

Direct labor = 4,775

Allocated overhead = 200*44 = 8,800

Total cost = 22,475

Unitary cost = 22,475/250 = $89.9