Question

Exercise 2-7 (Algo) 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 allocation base. The company pays its direct laborers $21.50 per hour. During the year, the company started and completed only two jobs—Job Alpha, which used 64,900 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 ? $2,806,000 Job Omega Direct materials Direct labor Manufacturing overhead applied Total job cost $ 443,900 571,900 385,700 $1,401,500 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. (Round your answer to 2 decimal places.) Plantwide predetermined overhead rate per DLH < Required 1 Required 2 >

Answer 1

1
Manufacturing overhead applied	385700
Divide by Direct labor hours	26600	=571900/21.50
Plantwide predetermined overhead rate	14.50	per DLH
2
Direct materials	469600	=2806000-1395350-941050
Direct labor	1395350	=64900*21.50
Manufacturing overhead applied	941050	=64900*14.50
Total job cost	2806000