Exercise 2-7 (Algo) Job-Order Costing; Working Backwards [LO2-1, LO2-2, LO2-3] 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 $13.50 per hour. During the year, the company started and completed only two jobs-Job Alpha, which used 68,700 direct labor-hours, and Job Omega. The job cost sheets for these two jobs are shown below: Job Alpha Direct materials Direct labor Manufacturing overhead applied Total job cost Job Omega Direct materials Direct labor Manufacturing overhead applied Total job cost ? ? ? $ 1,722,000 $ 237,050 368,550 177,450 $ 783,050 Required: 1. Calculate the plantwide predetermined overhead rate. 2. Complete the job cost sheet for Job Alpha. Required 1 Required 2 Complete this question by entering your answers in the tabs below. Calculate the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.) Plantwide predetermined overhead rate < Required 1 per DLH Required 2 >

Exercise 2-7 (Algo) Job-Order Costing; Working Backwards [LO2-1, LO2-2, LO2-3] 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 $13.50 per hour. During the year, the company started and completed only two jobs-Job Alpha, which used 68,700 direct labor-hours, and Job Omega. The job cost sheets for these two jobs are shown below: Job Alpha Direct materials Direct labor Manufacturing overhead applied Total job cost Job Omega Direct materials Direct labor Manufacturing overhead applied Total job cost ? ? ? $ 1,722,000 $ 237,050 368,550 177,450 $ 783,050 Required: 1. Calculate the plantwide predetermined overhead rate. 2. Complete the job cost sheet for Job Alpha. Required 1 Required 2 Complete this question by entering your answers in the tabs below. Calculate the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.) Plantwide predetermined overhead rate < Required 1 per DLH Required 2 >

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Description: Exercise 2-7 (Algo) Job-Order Costing; Working Backwards [LO2-1, LO2-2, LO2-3]Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as the allocationbase. The company pays its direct laborers

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 5SEB: PREDETERMINED FACTORY OVERHEAD RATE Marston Enterprises calculates a predetermined factory overhead...

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Concept explainers

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.

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Question

Exercise 2-7 (Algo) Job-Order Costing; Working Backwards [LO2-1, LO2-2, LO2-3]
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 $13.50 per hour. During the year, the company started and completed only two jobs-Job
Alpha, which used 68,700 direct labor-hours, and Job Omega. The job cost sheets for these two jobs are shown below:
Job Alpha
Direct materials
Direct labor
Manufacturing overhead applied
Total job cost
Job Omega
Direct materials
Direct labor
Manufacturing overhead applied
Total job cost
?
?
?
$ 1,722,000
$ 237,050
368,550
177,450
$ 783,050
Required:
1. Calculate the plantwide predetermined overhead rate.
2. Complete the job cost sheet for Job Alpha.
Required 1 Required 2
Complete this question by entering your answers in the tabs below.
Calculate the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.)
Plantwide predetermined overhead rate
< Required 1
per DLH
Required 2 >

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