Question

Exercise 2-7 Job-Order Costing; Working Backwards (LO2-1, LO2-2, LO2-3) 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 $15 per hour. During the year, the company started and completed only two jobs-Job Alpha, which used 54,500 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 ? ? ? $1,533,500 Job Omega Direct materials Direct labor Manufacturing overhead applied Total job cost $ 235,000 345,000 184,000 $ 764,000 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. Required 1 Required 2 Calculate the plantwide predetermined overhead rate.

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Answer 1

1.)	Plantwide predetermined overhead rate	$ 8	Per DLH
	Working
	Job Omega
	Manufacturing overhead applied	184,000
	Direct labor hour	23,000	=345000/15
	Predetermined overhead rate	8	=184000/23000
2.)	Job Alpha	Amount $
	Direct Materials	280,000	=1533500-817500-436000
	Direct labor ( 54,500 x 15 )	817,500
	Manufacturing overhead applied ( 54,500 x 8 )	436,000
	Total Job Cost	1,533,500