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 $19.00 per hour. During the year, the company started and completed only two jobs-Job Alpha, which used 63,400 direct labor-hours, and Job Omega. The job cost sheets for the these two jobs are shown below Skipped Job Alpha Direct materials Direct labor Manufacturing overhead applied Total job cost eBook Print Job Omega Direct materials Direct labor Manufacturing overhead applied Total job cost 384,400 514,900 $1,224,500 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.

Answer 1

1) Direct labor cost charged to Job Omega Direct labor cost per direct labor hour Direct labor hours used by Job Omega Overhead cost charged to Job Omega Predetermined overhead rate per DLH $514,900 $19 27,100 [$514900 / $19] $325,200 $12 ($325200 / DLHS --> Here, DLH refers to Direct Labor Hour] 2) Job Alpha: Direct materials Direct labor Manufacturing overhead applied Total job cost $486,600 (Ref: Workings] $1,204,600 [Ref: Workings] $760,800 (Ref: Workings] $2,452,000 Workings: Direct labor hours used by Job Alpha Direct labor cost per direct labor hour Direct labor cost for Job Alpha 63,400 $19 $1,204,600 [63400 DLHs x $19] Overhead cost charged to Job Alpha $760,800 [63400 DLHs x $12 (Using Predetermined OH rate calculated)] $2,452,000 [Given] Total costs assigned to Job Alpha Less: Direct labor cost for Job Alpha Overhead cost charged to Job Alpha Direct material cost for Job Alpha $1,204,600 [As calculated above] $760,800 [As calculated above] $486,600