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 $14.00 per direct labor hour. During the year, several jobs were completed. Data pertaining to one such job, Job 9-601, follow:

Direct materials $12,000
Direct labor cost:
Department A (450 hours @ $18) $8,100
Department B (120 hours @ $18) $2,160
Machine hours used:
Department A 200
Department B 800
Units produced 1,000
Required:

1. Compute the total cost of Job 9-601.
2. Compute the per-unit manufacturing cost for Job 9-601. Round your answer to the nearest cent.
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 $11.00 per machine hour.
3. Compute the total cost of Job 9-601.
4. Compute the per-unit manufacturing cost for Job 9-601. Round your answer to the nearest cent.

Part 1. Computation of the total cost of Job 9-601

Total cost= Unit cost of Job 9-601 × Units Produced

                = $30,240 × 1,000

                = $30,240,000

Part 2. Computation of the per-unit manufacturing cost for Job 9-601

Direct materials                                       $12,000

Direct labor cost:

Department A (450 hours @ $18)           $8,100

Department B (120 hours @ $18)             $2,160

Prime Cost                                               $22,260

Manufacturing Overheads:

Department A (450 hours @ $14)           $6,300

Department B (120 hours @ $14)            $1,680

Unit Manufacturing Cost                        $30,240

Part 3. Computation of the total cost of Job 9-601

Total cost= Unit cost of Job 9-601 × Units Produced

                = $24,930 × 1,000

                = $24,930,000

Part 4. Computation the per-unit manufacturing cost for Job 9-601.

Direct materials                                       $12,000

Direct labor cost:

Department A (450 hours @ $18)           $8,100

Department B (120 hours @ $18)             $2,160

Prime Cost                                               $22,260

Manufacturing Overheads:

Department A (450 hours @ $3)            $1,350

Department B (120 hours @ $11)            $1,320

Unit Manufacturing Cost                        $24,930

Explanation:

Part 1. Computation of the total cost of Job 9-601

Total cost= Unit cost of Job 9-601 × Units Produced

Part 2. Computation of the per-unit manufacturing cost for Job 9-601

Addition of all Manufacturing Costs ( Direct and Indirect) gives the unit manufacturing cost.

Note: Overhead is applied using a plantwide overhead rate of $14.00 per direct labor hour for Both Department A and Department B

Part 3. Computation of the total cost of Job 9-601

Total cost= Unit cost of Job 9-601 × Units Produced

Part 4. Computation the per-unit manufacturing cost for Job 9-601.

Addition of all Manufacturing Costs ( Direct and Indirect) gives the unit manufacturing cost.

Note: Overhead is applied  as follows: 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 $11.00 per machine hour.

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