Question

Dansville Heating & Cooling installs and services commercial heating and cooling systems Dansvillets job Casting to calculate the cost of its jobs Overhead is allocated to each job based on the number of direct labor hours spent on that job. At the beginning of the currenty Danville estimated that is overhead for the coming year would be 566.750. It also anticipated using 4.450 direct labor hours for the year In May Dangville started and completed the following twojobs Click the icon to view the Jobs Dans le paid a $36-per-hour wage rate to the employees who worked on these twojobs Read the require Requirement 1. What is Dansville's predetermined overhead rate based on direct labor hours? Dansvil's predetermined over how based on direct labor hours is Requirement. Ce the oven to be able to each of the two be based on direct labor hours Overtad costs Requirement. What is the cost of 1012 What the cost of 10 Job 101 Job 102 Total com

Answer 1

1. Predetermined overhead= Total overhead/ Total labour hours= 66750/4450= $15

2. Overhead allocated to each job

• Job 101= 190 hours*$15= $2850
• Job 102= 82 hours*$15= $1230

3. Total Job cost= Direct labour+Direct material+Overhead

• Job 101= 36*190+18000+2850= $27690
• Job 102= 36*82+14500+1230= $18682