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 $15.50 per hour. During the year, the company started and completed only two jobs-Job Alpha, which used 64,400 direct labor-hours, and Job Omega. The job cost sheets for the these two jobs are shown below: points Job Alpha Direct materials Direct labor Manufacturing overhead applied Total job cost eBook $ 1,790,000 Hint Print References Job Omega Direct materials Direct labor Manufacturing overhead applied Total job cost $ 276,950 401,450 220,150 $ 898,550 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 1 Required 2 Calculate the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.)

Answer 1

Answer 1 Direct Labour rate per hour $15.50 Direct labor cost for Omega 401450 No of hours used for Omega Direct labor cost Direct labor rate per hour 401450 15.5 25900 hours Let overhead rate per hour be X Manufacturing overhead applied for Omega 220150 Direct labor hours for Omega Overhead rate per hour 25900*X 25900*X 220150 х 220150/25900 $8.5 per hour Therefore plantwide predetermined overhead rate is $8.5 Answer 2 No of hours for Alpha 64,400 Direct Labour rate per hour $15.50 Total Direct labor cost 64400*15.5 998200 Direct labor hours for Manufacturing overhead Omega Overhead rate per applied for Alpha hour 64,400*8.5 547400 Direct material+Direct labor+Manufacturing Total cost of Alpha overhead 1,790,000 Direct material+998200+547400 Direct material+1545600 Direct material 1790000-1545600 244400 Job cost sheet for Alpha Direct material Direct Labour Manufacturing overhead applied for Alpha Total Job cost 244400 998200 547400 1790000