Question

Question 5 Moor Company uses a job-order costing system and applies overhead costs to jobs at a rate of 120% of direct labor cost. Moor Company started the month of June with three jobs in process. The cost of beginning work in process plus the costs added during June are shown below: Job Job #1-A $3,250 Job #3-G $2,690 beginning work in process .. $3,720 COSTS ADDED DURING JUNE: direct materials ... direct labor ........ $4,680 3,530 $3,950 $2,870 2,410 4,180 During June, Moor Company completed and sold Job #1-A. Job #3-G was also completed but was not sold by the end of June. Job #7 -L was not completed by the end of June. Moor Company's cost of goods sold for June after the overhead variance was closed totaled $16,290. Calculate Moor Company's actual overhead cost for the month of June.

Answer 1

	Job #1-A
Beginning work in process	3250
Direct materials	4680
Direct labor	3530
Overhead applied	4236	=3530*120%
Total cost Job #1-A	15696
Underapplied overhead	594	=16290-15696
Total direct labor costs	10120	=3530+4180+2410
X Overhead rate	120%
Overhead applied	12144
Overhead applied	12144
Add: Underapplied overhead	594
Actual overhead cost	12738