Question

Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as the allocation base. The company pays its direct laborers $21.50 per hour. During the year, the company started and completed only two jobs—Job Alpha, which used 64,900 direct labor-hours, and Job Omega. The job cost sheets for the these two jobs are shown below:

Job Alpha
Direct materials		?
Direct labor		?
Manufacturing overhead applied		?
Total job cost	$	2,806,000

Job Omega
Direct materials	$	443,900
Direct labor		571,900
Manufacturing overhead applied		385,700
Total job cost	$	1,401,500

Required:

1. Calculate the plantwide predetermined overhead rate.

2. Complete the job cost sheet for Job Alpha.

Complete this question by entering your answers in the tabs below. Required 1Required 2 Calculate the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.) Plantwide predetermined overhead rate per DLH

Answer 1

1.

Predetermined overhead rate :

Direct labor hours for Job Omega = $571,900 / $21.50 = 26,600 hours

Predetermined overhead rate = $385,700 / 26,600 = $14.5 per direct labor hour

2.

Job Alpha
Direct material (2,806,000-1,395,350-941,050)	469,600
Direct labor (64,900*$21.50)	1,395,350
Manufacturing overhead applied (64,900*$14.5)	941,050
Total job cost	$2,806,000