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 2 2 2 $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. Plantwide predetermined overhead rate per DLH (Required Required 2 >

Answer 1

Answer: ( 1.) Plantwide Predetermined overhead Rate Choosevo Manufacturing overhead oppled No. of direct Labour hours. (WNI) CODE 021187 ) - 002.62 $18400 GOS 23000 hours - $8 per labour hour WNI- Number of direct labour hours on Job О Omega Direct Labour Labour Cost per hour $ 34500s $15 a 23000 hours. 2800rso The Job Cost sheet for Job Alpha . Direct Materials (wN2) Direct Labour (54500X $15) Manufacturing overhead (54500x88) Total Job Cost (conen) 817,500 436,000 $1,533,500

WN2: Direct Material = Total Job Cost- (Direct Labour + Menufacturing overhead) = $1,533,500 -($817,500+ $436,000) coloue = $ 280,000 .

Thankyou........