X Company, a manufacturer, uses a plantwide overhead allocation system with direct labor as the cost...
X Company, a manufacturer, uses a plantwide overhead allocation system with direct labor as the cost driver. The following is budgeted total cost and activity information in 2018:
| Direct materials | $291,758 |
| Direct labor | $510,577 |
| Overhead | $531,000 |
| Research & development | $110,000 |
| Advertising | $59,000 |
| Direct labor hours | 24,698 |
The following information is taken from the job cost sheet for Job A in 2018:
| Direct | Direct | Direct | ||
| Materials | Labor | Labor Hours | Overhead | |
| Total | $44,770 | $88,000 | 747 | ?? |
How much overhead was allocated to Job A [round overhead rate(s) to
two decimal places]?
Homework Answers
Answer = $91,520
Plant wide overhead Rate = Overhead Labor cost = $,531,000/510,577 =104%
Overheads allocated to Job A = Labor cost * Overhead Rate = 88,000*104% =$91,520 (Answer)
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X Company, a manufacturer, uses a plantwide overhead allocation
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