Question

The expected volume is 180,000 direct labor-hours for the entire year. The following informa a predetermined overhead rate based on direct labor-hours to apply overhead to individual you Kansas Company uses a job costing accounting system for its production costs. The company for Required Complete the T-accounts. of a -3) follows. Direct labor-hours Variable overhead costs. Fixed overhead costs Total overhead 150,000 $1,050,000 648,000 $1,698.000 180,000 $1,260,000 648,000 $1,908,000 210,000 $1,470,000 648,000 $2,118,000 tion is for March, when Jobs 6023 and 6024 were completed. $ 31.500 $162,000 $337,500 $405,000 $ 45,000 Inventories, March 1 Materials and supplies Work in process (Job 6023) Finished goods Purchases of materials and supplies Materials.. Supplies Materials and supplies requisitioned for production Job 6023 Job 6024 Job 6025 Supplies $135.000 112,500 76,500 18,000 $342.000 10,500 DLH 9,000 DLH 6,000 DLH Factory direct labor-hours (DLH) Job 6023 Job 6024 Job 6025 Labor costs Direct labor wages (all hours @ $8). Indirect labor wages (12,000 hours) Supervisory salaries $204,000 51,000 108,000 (continued)

Answer 1

a. Predetermined overhead rate = Estimated total overhead costs/Estimated direct labor hours = $1908000/180000 = $10.60 per direct labor hour

b.

	Job 6023
Beginning WIP	162000
Direct materials	135000
Direct labor (10500 x $8)	84000
Factory overhead applied (10500 x $9)	94500
Total cost $	475500

c. Factory overhead cost applied to Job 6025 = 6000 DLH x $9 = $54000

d. Total amount of overhead applied to jobs during March = (10500 + 9000 + 6000) x $9 = 25500 x $9 = $229500

Per Chegg guidelines the first 4 parts have been answered. Please post the remaining parts separately. Thank you.