Question

Please Help

CAS 27 0 Saved Help Save & Exit Submit Lorenzo Company uses a job order costing system that charges overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following Explanat 2017 Dec. 31 Direct materials cost 1,000,000 300,000 430,000 31 Direct labor cost 31 Overhead applied 31 To finished goods 1,000,000 1,300,00o points 1.659.00 1 70.000 1. Determine the predetermined overhead rate used (based on direct materials cost). 2. Only one job remained in work in process inventory at December 31, 2017 Its direct materials cost is $37000. How much direct labor cost and overhead cost are assigned to this job? eBook Complete this question by entering your answers in the tabs below References Required 1Required 2 Determine the predetermined overhead rate used (based on direct material cost). Overhead Rate hoose Den Overhead rabe Overhead costs Direct materials cost 43% 430,000ts 1,000,000 Required 2 Prey 1 of 2 111 Next >

Answer 1

Requirement 1 :-

Overhead Rate = (Overhead Cost ÷ Direct material Cost) × 100

= ($430,000 ÷ 1,000,000) × 100

= 43%

Requirement 2 :-

a)As given Total Cost of Job in progress $71,000

b)Les:- Material Cost of job in progress $37,000

c)Less:- Overhead applied ($37,000*43%) $15,910

d) Direct Labour Cost ( a - b - c ) $18,090