Question

Connect er 2 Saved 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 alibcation 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. Plantwido predetermined overhead role per DLH Required 2 >

Answer 1

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Hahn Company
Answer 1	Amount $	Note
Direct labor cost of Omega	345,000.00	A
Cost per hour	15.00	B
Labor hour used in Omega	23,000.00	C=A/B
Manufacturing overhead applied to Omega	184,000.00	D
Plant wide predetermined overhead rate	8.00	E=D/C
Workings for Answer 2	Amount $
Labor hour used in Alpha	54,500.00	F
Cost per hour	13.00	See B
Direct labor cost of Alpha	708,500.00	G=F*B
Plant wide predetermined overhead rate	8.00	See E
Labor hour used in Alpha	54,500.00	See F
Manufacturing overhead applied to Omega	436,000.00	H=E*F
Total job cost	1,533,500.00
Less: Labor cost	708,500.00
Less: Manufacturing overhead applied	436,000.00
Direct materials cost of Alpha	389,000.00	I
Answer 2	Amount $
Direct materials	389,000.00	See I
Direct labor cost	708,500.00	See G
Manufacturing overhead applied	436,000.00	See H
Job cost of Alpha	1,533,500.00