Haslett Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,900 units of Product B was received. The standard cost of one unit of Product B is as follows.
| Direct materials | 2 pounds at $1.00 per pound | $ 2.00 | ||
| Direct labor | 2.00 hour at $8 per hour | 16.00 | ||
| Overhead | 2 hours (variable $4.50 per machine hour; fixed $2.50 per machine hour) | 14.00 | ||
| Standard cost per unit | $32.00 |
Normal capacity for the month was 4,100 machine hours. During January, the following transactions applicable to Job No. 12 occurred.
| 1. | Purchased 4,256 pounds of raw materials on account at $1.05 per pound. | |
| 2. | Requisitioned 4,256 pounds of raw materials for Job No. 12. | |
| 3. | Incurred 3,895 hours of direct labor at a rate of $7.91 per hour. | |
| 4. | Worked 3,895 hours of direct labor on Job No. 12. | |
| 5. | Incurred manufacturing overhead on account $33,120. | |
| 6. | Applied overhead to Job No. 12 on basis of standard machine hours allowed. | |
| 7. | Completed Job No. 12. | |
| 8. | Billed customer for Job No. 12 at a selling price of $150,100. |