Question

For full credit, properly label your answers. E.g. $20,342; 74 MH; $7.42 1. A manufacturer's job cost sheet reports direct materials of $1,200 and direct labor of $250 for printing 200 T-shirts for a class reunion. Estimated overhead is computed as 140% of direct labo costs. a) What is the estimated overhead for this job? b) What is the total product cost for this job? c) What is the cost per T-shirt?

Answer 1

a
Direct labor cost	250
X Overhead rate	140%
Estimated overhead for this job	$350
b
Direct materials	1200
Direct labor cost	250
Estimated overhead	350
Total product cost for this job	$1,800
c
Total product cost for this job	1800
Divide by Total T-shirts	200
Cost per T-shirt	$9