Question

Exercise 2-7 Job-Order Costing; Working Backwards [LO2-1, LO2-2, LO2-3] 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 $12.50 per hour. During the year, the company started and completed only two jobs-Job Alpha, which used 68,200 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 $1,674,000 Job Omega Direct materials Direct labor Manufacturing overhead applied Total job cost $ 232, 250 378,750 166,650 $ 777,650 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.) Plantwide predetermined overhead rate per DLH Required 1 Required 2 >

Answer 1

1) Direct labor hour for Job Omega = 378750/12.50 = 30300 Hour

Predetermine overhead rate = overhead applied/Direct labor hour = 166650/30300 = 5.50 per hour

2) Total job Cost

Direct material	446400
Direct labor (68200*12.50)	852500
Overhead applied	375100
Total manufacturing cost	1674000