Parker Corporation Uses a Job-Order Costing System and Applies Manufacturing

question 87

Essay

Parker Corporation uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours.Last year manufacturing overhead and direct labor-hours were estimated at $50, 000 and 20, 000 hours, respectively, for the year.In June, Job #461 was completed.Materials costs on the job totaled $4, 000 and labor costs totaled $1, 500 at $5 per hour.At the end of the year, it was determined that the company worked 24, 000 direct labor-hours for the year and incurred $54, 000 in actual manufacturing overhead costs.
Required:
a.Job #461 contained 100 units.Determine the unit product cost that would appear on the job cost sheet.
b.Determine the underapplied or overapplied overhead for the year.

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Definitions:

Emotional Responses

The emotional reactions or feelings stimulated by an event, situation, or stimulus.

Ivan Pavlov

A Russian physiologist best known for his work in classical conditioning, demonstrating the learning process now known as Pavlovian conditioning.

Conditioned Responses

Learned reactions or behaviors in response to specific conditioned stimuli that have been associated with an unconditioned stimulus.

Russian Physiologist

Refers to a scientist from Russia specializing in physiology, which is the scientific study of normal mechanisms, and their interactions within living systems.