Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially; accordingly, it has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many jobs completed by the company during the year. Your goal is to complete the table shown below and comment on the insights that it provides:
Job | Sales | Direct Materials | Direct Labor | Applied Overhead | Total Job Cost | Gross Margin | |
1 | $ | 2,400 | ? | ? | ? | ? | ? |
2 | $ | 5,400 | ? | ? | ? | ? | ? |
3 | $ | 9,000 | ? | ? | ? | ? | ? |
4 | $ | 1,450 | ? | ? | ? | ? | ? |
5 | $ | 2,200 | ? | ? | ? | ? | ? |
6 | $ | 7,000 | ? | ? | ? | ? | ? |
7 | $ | 1,700 | ? | ? | ? | ? | ? |
8 | $ | 1,600 | ? | ? | ? | ? | ? |
9 | $ | 8,000 | ? | ? | ? | ? | ? |
10 | $ | 4,100 | ? | ? | ? | ? | ? |
11 | $ | 3,200 | ? | ? | ? | ? | ? |
12 | $ | 2,800 | ? | ? | ? | ? | ? |
Click here to download the Excel template, which you will use to answer the questions that follow.
Click here for a brief tutorial on PivotTables in Excel.
Click here for a brief tutorial on VLOOKUP in Excel.
2. Go to the tab titled “Direct Labor Summary.”:
a. Using PivotTable, calculate the total direct labor cost and total direct labor-hours for each of the 12 jobs.
b. What is the total direct labor cost for Jobs 3 and 10?
c. What are the total direct labor-hours for Jobs 3 and 10?
The question could be answered
based on students knowledge to
interpret water fall chart.
Please refer to the attached image for the answer.
Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially; accordingly, it has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many jobs...
Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially; accordingly, it has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many jobs...
Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially; accordingly, it has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many jobs...
Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially; accordingly, it has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many jobs...
Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially; accordingly, it has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many jobs...
Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially; accordingly, it has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many jobs...
Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially; accordingly, it has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many jobs...
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 $21.00 per hour. During the year, the company started and completed only two jobs—Job Alpha, which used 69,500 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 $ 2,926,000 Job Omega Direct...
1.Consider a single job at Company B: Direct Materials costs were : 7,882 Direct labor was 64 hours at a rate of $16/HR MOH is allocated to jobs based on labor hours Budgeted MOH cost is 23,428 Budgeted dl labor hours is 4,622 actual MOH was 28,730 actual direct labor hours was 5,422 If actual costing is used, what is the actual overhead rate? 2. Consider a single job at Company B: Direct Materials costs were : 6,845 Direct labor...
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 $13.00 per hour. During the year, the company started and completed only two jobs—Job Alpha, which used 64,200 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 $ 1,620,000 Job Omega Direct...