The firm is a manufacturing company that uses a job-order costing system. The plant processes jobs...

 

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The firm is a manufacturing company that uses a job-order costing system. The plant processes jobs through two departments. Information on selected budgeted and actual data for the past year are as follows: Budgeted overhead Actual overhead Expected direct labor hours (DLH) Expected machine hours (MH) Department A Department B P 100,000 P500,000 110,000 $520,000 50,000 10,000 10,000 50,000 Rocky Company uses a plantwide predetermined overhead rate for jobs based on direct labor hours (DLH). Data for Job 10, one of several jobs completed during the year are as follows: Direct materials $20,000 Direct labor cost: Department A (5,000 hours, at P6 per hour) $30,000 Department B (1,000 hours, at P6 per hour) P6,000 Machine hours used: Department A Department B 100 1,200 10,000 Units produced Required 1. Compute the plantwide predetermined overhead rate (POHR). Required 2. a. Compute the per unit manufacturing cost for Job 10. b. Rocky Company's Marketing Manager applies a mark-up on cost of 30 percent. What is the unit selling price of Job 10? Required 3. a. Assume Job 10 was completed in May and sold in September. Compute the total cost of Job 10. b. Prepare journal entries for the completion and sale of Job 10. The firm is a manufacturing company that uses a job-order costing system. The plant processes jobs through two departments. Information on selected budgeted and actual data for the past year are as follows: Budgeted overhead Actual overhead Expected direct labor hours (DLH) Expected machine hours (MH) Department A Department B P 100,000 P500,000 110,000 $520,000 50,000 10,000 10,000 50,000 Rocky Company uses a plantwide predetermined overhead rate for jobs based on direct labor hours (DLH). Data for Job 10, one of several jobs completed during the year are as follows: Direct materials $20,000 Direct labor cost: Department A (5,000 hours, at P6 per hour) $30,000 Department B (1,000 hours, at P6 per hour) P6,000 Machine hours used: Department A Department B 100 1,200 10,000 Units produced Required 1. Compute the plantwide predetermined overhead rate (POHR). Required 2. a. Compute the per unit manufacturing cost for Job 10. b. Rocky Company's Marketing Manager applies a mark-up on cost of 30 percent. What is the unit selling price of Job 10? Required 3. a. Assume Job 10 was completed in May and sold in September. Compute the total cost of Job 10. b. Prepare journal entries for the completion and sale of Job 10.