Texts: The St Cloud plant for the past year are as follows:
Department A Department B Department C Total
Budgeted department overhead (excludes plantwide overhead) $141,100 $610,000 $162,000 $635,900
Actual department overhead $32,000 $17,000 $33,500 $17,800
Expected direct labor hours 20,000 44,000 19,400 46,000
Machine-hours 19,400 46,000
For the coming year, the accountants at the St Cloud plant are in the process of helping the sales force create bids for several jobs. Projected data pertaining only to job no.110 are as follows:
Direct materials $23,500
Direct labor costs $39,000
Department A: 2,600 hr of labor
Machine-hours projected:
Department A: 140
Department B: 1,200
Department C: 8,000
Required:
1. Use expected total direct labor hours to compute the overhead rate.
2. What is the expected cost per unit produced for job no.110?
