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.
Required:
5. Go to the tab titled “Job Profitability.”:
a. Using formulas that refer to your answers from requirements 1-4, calculate the direct materials, direct labor, and applied overhead cost for each of the 12 jobs. (Hint: Use VLOOKUP to reference values from the pivot tables you created in requirements 1 and 2.)
b. What is the amount of applied overhead for Jobs 4 and 9?
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...
Required:5. Go to the tab titled “Job Profitability.”:a. Using formulas that refer to your answers from requirements 1-4, calculate the direct materials, direct labor, and applied overhead cost for each of the 12 jobs. (Hint: Use VLOOKUP to reference values from the pivot tables you created in requirements 1 and 2.)b. What is the amount of applied overhead for Jobs 4 and 9?Required:6. Within the “Job Profitability”:a. create formulas that compute the total job cost and gross margin for each of the 12 jobs.b. What is...
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...
Applying Overhead to Jobs, Costing Jobs Gorman Company builds internal conveyor equipment to client specifications. On October 1, Job 877 was in process with a cost of $18,690 to date. During October, Jobs 878, 879, and 880 were started. Data on costs added during October for all jobs are as follows: Job 877 Job 878 Job 879 Job 880 Direct materials $14,380 $5,970 $3,510 $1,770 Direct labor 14,600 8,500 2,200 2,400 Overhead is applied to production at the rate of...