ACCOUNTING HOMEWORK HELP

JOB ORDER COSTING EXERCISE – BATCH

Calico Company makes gingham aprons and smocks. It uses job order costing to determine its product costs. It uses machine hours to apply overhead. For the fiscal year starting January 1, 2009, CC estimated that it would incur $1,600,000 in manufacturing overhead costs and that it would work 320,000 machine hours total during the year.

In the month of September, CC completed several batches, including Job 911-C which consisted of 20,000 butterscotch gingham aprons with rickrack. Job 911-C incurred direct material costs of $50,000, direct labor costs of $25,000, and used 12,000 machine hours to complete.

At the end of the year, CC had incurred total actual manufacturing overhead costs of $2,010,000 and had worked a total of 405,000 machine hours.

REQUIRED:

a) Determine the batch and the cost per unit of Job 911-C.

b) Determine whether manufacturing overhead is over- or underapplied and by how much.