Job Costs Using a Plantwide Overhead Rate Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $280,000, and budgeted direct labor hours were 16,000. The average wage rate for direct labor is expected to be $35 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Job 41 Job 42 Beginning balance $22,700 $35,500 $15,800 $1,700 Materials requisitioned 20,100 21,000 10,300 15,600 Direct labor cost 11,200 18,100 4,950 6,500 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41 and 42 remain unfinished at the end of the month.
1 | Overhead rate=Budgeted overhead/Budgeted direct labor cost | ||||||||
Budgeted direct labor cost=Budgeted direct labor hours*Average wage rate=16000*35=$ 560000 | |||||||||
Overhead rate=280000/560000=0.50=50% of direct labor cost | |||||||||
2 | Naranjo company | ||||||||
Job-order cost sheets | |||||||||
Job 39 | Job 40 | Job 41 | Job 42 | ||||||
Balance,june 1 | 22700 | 35500 | 15800 | 1700 | |||||
Materials requisitioned | 20100 | 21000 | 10300 | 15600 | |||||
Direct labor cost | a | 11200 | 18100 | 4950 | 6500 | ||||
Overhead applied | a*50% | 5600 | 9050 | 2475 | 3250 | ||||
Total | 59600 | 83650 | 33525 | 27050 | |||||
3 | New Budgeted direct labor cost=Budgeted direct labor hours*Average wage rate=16000*28=$ 448000 | ||||||||
New overhead rate=Budgeted overhead/Budgeted direct labor cost=280000/448000=0.625=62.5% of direct labor cost | |||||||||
Cost of the jobs would be increased since overhead rate has increased from 50% to 62.5% | |||||||||
Job Costs Using a Plantwide Overhead Rate Naranjo Company designs industrial prototypes for outside companies. Budgeted...
Job Costs Using a Plantwide Overhead Rate Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $180,000, and budgeted direct labor hours were 18,000. The average wage rate for direct labor is expected to be $20 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Job 41 Job 42 Beginning balance $26,600 $34,200 $15,600 $1,700 Materials requisitioned 16,700 23,400 10,800 12,100 Direct labor...
Job Costs Using a Plantwide Overhead Rate Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $367,500, and budgeted direct labor hours were 21,000. The average wage rate for direct labor is expected to be $35 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Job 41 Job 42 Beginning balance $25,300 $34,300 $15,500 $1,100 Materials requisitioned 20,100 23,800 8,300 12,400 Direct labor...
Job Costs Using a Plantwide Overhead Rate Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $285,000, and budgeted direct labor hours were 19,000. The average wage rate for direct labor is expected to be $30 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Job 41 Job 42 Beginning balance $24,900 $35,800 $19,400 $1,000 Materials requisitioned 19,300 23,400 10,300 14,800 Direct labor...
Job Costs Using a Plantwide Overhead Rate Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $287,500, and budgeted direct labor hours were 23,000. The average wage rate for direct labor is expected to be $25 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Job 41 Job 42 Beginning balance $26,100 $32,800 $18,500 $900 Materials requisitioned 16,000 23,000 10,900 12,500 Direct labor...
Job Costs Using a Plantwide Overhead Rate Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $390,000, and budgeted direct labor hours were 26,000. The average wage rate for direct labor is expected to be $30 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Job 41 Job 42 Beginning balance $23,300 $34,800 $19,700 $500 Materials requisitioned 19,800 20,400 10,600 12,600 Direct labor...
Job Costs Using a Plantwide Overhead Rate Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $385,000, and budgeted direct labor hours were 22,000. The average wage rate for direct labor is expected to be $35 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Job 41 Job 42 Beginning balance $26,200 $36,000 $15,900 $1,200 Materials requisitioned 16,600 21,400 8,700 14,400 Direct labor...
Job Costs Using a Plantwide Overhead Rate Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $360,000, and budgeted direct labor hours were 24,000. The average wage rate for direct labor is expected to be $30 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Job 41 Job 42 Beginning balance $25,500 $32,900 $16,800 $1,400 Materials requisitioned 19,400 23,400 8,700 15,700 Direct labor...
Job Costs Using a Plantwide Overhead Rate Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $260,000, and budgeted direct labor hours were 20,000. The average wage rate for direct labor is expected to be $25 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Job 41 Job 42 Beginning balance $23,700 $34,600 $17,000 $0 Materials requisitioned 18,900 21,400 8,350 12,000 Direct labor...
Job Costs Using a Plantwide Overhead Rate Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $260,000, and budgeted direct labor hours were 20,000. The average wage rate for direct labor is expected to be $25 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Job 41 Job 42 Beginning balance $23,700 $34,600 $17,000 $0 12,000 Materials requisitioned 8,350 18,900 10,000 21,400 18,000...
Job Casts Using a Plantwide Overhead Rate Naranjo Company designs Industrial prototypes for outside companies. Budgeted overhead for the year was $262,500, and budgeted direct labor hours were 21,000. The average wage rate for direct labor is expected to be $25 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Job 41 Job 42 Beginning balance $26,200 $34,500 $15,700 $400 Materials requisitioned 16,100 22,600 12,300 15,800 Direct labor...