Benner Company uses a work order costing system and applies production overheads to jobs using a predetermined overhead rate based directly on working hours . Overall production and direct labor hours are estimated at $66,000 and 22,000 hours, respectively. Job 461 was completed in June. At $7.50 per hour ( 310 hours worked on this job ), the job's material cost totaled $4,923 and labor cost totaled $2,325. At year-end, it was determined that the company worked 23,975 direct labor-hours for the year and incurred an actual production overhead cost of $69,218.53 . Required (3 Points):

Calculate the predetermined overhead rate and calculate the overhead amount applied to Job #461.

Job #461 contained 110 units. Determine the total cost of product to be taken for this job and the cost per unit of product produced .

Calculate the amount of under- or over-applied overhead for the Benner Company. Assuming the amount is not material, write down the journal entry required to close the production overhead account at the end of the year.

Answer rating: 100% (QA)

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