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 $13.50 per hour. During the year, the company started and completed only two jobs-Job Alpha, which used 68,700 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 $ 1,722,000 Job Omega Direct materials Direct labor Manufacturing overhead applied Total Job cost $ 237,050 368,550 177,450 $ 783,050 Required 1. Calculate the plantwide predetermined overhead rate. 2. Complete the job cost sheet for Job Alpha.

Answer 1

1
Manufacturing overhead applied for Job Alpha	177450
Divide by Direct labor hours for Job Alpha	27300	=368550/13.50
Plantwide predetermined overhead rate	6.50
2
Direct materials	348000	=1722000-927450-446550
Direct labor	927450	=68700*13.50
Manufacturing overhead applied	446550	=68700*6.50
Total job cost	1722000