ACCT6004 Management Accounting - Group Case Study Assignment

ACCT 6004 GROUP CASE STUDY ASSIGNMENT
Activity 3: Job Order Costing and Ethics in J&B Sports

J&B Sports custom makes soccer tops (jerseys), shorts, socks and jackets for individual clubs and players within the clubs. Players order their name and selected number on the back of each jersey. Clubs also have specific requirements regarding the sponsors’ logos which need to be added to the clothing. The kits are manufactured in batches and product costs are accumulated for each batch or job. When the job is completed, the total costs accumulated for the job are divided by the number of units produced to determine the average cost per
unit.
J&B Sports has determined the following unit costs for three of its four products:

Required:

a. Given that J&B Sports uses direct labour dollars as its application base, what is the company’s predetermined overhead rate?