Question

Prompton Heating & Cooling installs and services In June, Prompton started and completed the following commercial heating and cooling systems. Prompton uses two jobs: job costing to calculate the cost of its jobs. Overhead is (Click the icon to view the jobs.) allocated to each job based on the number of direct labor hours spent on that job. At the beginning of the current Prompton paid a $20-per-hour wage rate to the year, Prompton estimated that its overhead for the coming employees who worked on these two jobs. year would be $66,400. It also anticipated using 4,150 direct labor hours for the year. Read the requirements. Requirement 1. What is Prompton's predetermined overhead rate based on direct labor hours? Prompton's predetermined overhead rate per hour based on direct labor hours is Requirement 2. Calculate the overhead to be allocated to each of the twołjobs based on direct labor hours. Job 101 Job 102 Overhead costs Requirement 3. What is the total cost of Job 101? What is the total cost of Job 102? Job 101 Job 102 Total job cost

Answer 1

1) Predetermine overhead rate = 66400/4150 = 16 per hour

2) Overhead allocated

	Job 101	Job 102
Overhead allocated	165*16 = 2640	80*16 = 1280

3) Total cost

	Job 101	Job 102
Direct material	17000	13000
Direct labor	165*20 = 3300	1600
Overhead	2640	1280
Total Cost	22940	15880