Elkland Heating & Cooling installs and services commercial heating and cooling systems. Elkland uses job costing to calculate the cost of its jobs. Overhead is allocated to each job based on the number of direct labor hours spent on that job. At the beginning of the current year, Elkland estimated that its overhead for the coming year would be $61,500. It also anticipated using 4,100 direct labor hours for the year. Requirement 1. What is Elkland's predetermined overhead rate based on direct labor hours? ← In November, Elkland started and completed the following two jobs: (Click the icon to view the jobs.) Elkland paid a $24-per-hour wage rate to the employees who worked on these two jobs. Read the requirements.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Elkland
Heating & Cooling installs and services commercial heating and cooling systems.
screenhosta ttache below as well
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![Elkland Heating & Cooling installs and services commercial heating and cooling systems. Elkland uses
job costing to calculate the cost of its jobs. Overhead is allocated to each job based on the number of
direct labor hours spent on that job. At the beginning of the current year, Elkland estimated that its
overhead for the coming year would be $61,500. It also anticipated using 4,100 direct labor hours for
the year.
Requirements
Requirement 1. What is Elkland's predetermined overhead rate based on direct labor hours?
Determine the formula to calculate Elkland's predetermined overhead rate based on direct labor hours, then calculate the rate.
= Predetermined overhead rate
1. What is Elkland's predetermined overhead rate based on direct
labor hours?
2.
Calculate the overhead to be allocated to each of the two jobs based on
direct labor hours.
3. What is the total cost of Job 101? What is the total cost of Job 102?
Print
- X
Done
C
In November, Elkland started and completed the following two jobs:
(Click the icon to view the jobs.)
Elkland paid a $24-per-hour wage rate to the employees who worked on these two jobs.
Read the requirements.
Data table
Direct materials used .......S
Direct labor hours used .....
Print
Job 101
15,000 $
155
Done
Job 102
10,000
72
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