Question

Recording Direct Labor and Factory Overhead

Chamlee Industries Inc. manufactures recreational vehicles. Chamlee Industries uses a job order cost system. The time tickets from May jobs are summarized below.

Job 5-100	$10,880
Job 5-101	6,630
Job 5-102	8,160
Job 5-103	4,930
Factory supervision	2,975

Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $35 per direct labor hour. The direct labor rate is $30 per hour.

a. Determine the total factory labor costs transferred to Work in Process and Factory Overhead for May. If required, round your answers to nearest dollar.

Factory labor costs transferred to Work in Process	$
Factory labor costs transferred to Factory Overhead	$

b. Determine the amount of factory overhead applied to production for May. If required, round your answer to nearest dollar.
$

Answer 1

a.
Job 5-100	10880
Job 5-101	6630
Job 5-102	8160
Job 5-103	4930
Factory labor costs transferred to work in process	30600
Factory supervision	2975
Factory labor costs transferred to factory overhead	2975

b.
Total direct labor hours worked = Factory labor costs transferred to work in process / Direct labor rate per hour = 30600 / 30	1020
Amount of factory overhead applied to production for May = Total direct labor hours worked * Predetermined overhead rate = 1020 * 35	35700