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 $21.00 per hour. During the year, the company started and completed only two jobs—Job Alpha, which used 69,500 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	$	2,926,000

Job Omega
Direct materials	$	483,400
Direct labor		627,900
Manufacturing overhead applied		418,600
Total job cost	$	1,529,900

Required:

1. Calculate the plantwide predetermined overhead rate.

2. Complete the job cost sheet for Job Alpha.

Please show answer without using excel

Answer 1

A	B	C	D	E	F	G	H	I	J
2
3
4		Direct Labor hours used for Alpha	69500
5		Direct Labor	$21.00	per Hour
6		Direct Labor cost for Alpha	$1,459,500	=D4*D5
7
8		Job Alpha
9		Direct Materials
10		Direct Labor
11		Manufacturing Overhead Applied
12		Total Job Cost	$2,926,000
13
14		Job Omega
15		Direct Materials	$483,400
16		Direct Labor	$627,900
17		Manufacturing Overhead applied	$418,600
18		Total Job cost	$1,529,900
19
20		1)
21		Allocation base is direct labor hours, therefore
22		Predetermined overhead rate	=Manufacuring Overhead Applied / Number of direct labor hours
23
24		Direct Labor hours for Omega	=Direct labor cost / Direct labor rate
25			29900	=D16/D5
26
27		Manufacturing Overhead applied for Omega	$418,600
28
29		Predetermined overhead rate	=Manufacuring Overhead Applied / Number of direct labor hours
30			$14.00	=D27/D25
31
32		Hence Plantwide overhead rate is	$14.00	per direct labor hour
33
34		2)
35
36		Job Alpha
37		Direct Materials	$493,500	=D40-D39-D38
38		Direct Labor	$1,459,500	=D6
39		Manufacturing Overhead Applied	$973,000	=D4*D32
40		Total Job Cost	$2,926,000
41
42		Job Omega
43		Direct Materials	$483,400
44		Direct Labor	$627,900
45		Manufacturing Overhead applied	$418,600
46		Total Job cost	$1,529,900
47
48