ISE 2-7 Prder Costing; working Backwards 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 $15 per hour. During the year, the company started and completed only two jobs-Job Alpha, which used 54,500 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 $1,533,500 Job Omega Direct materials $235,000 Direct labor 345,000 Manufacturing overhead applied 184,000 Total job cost $764,000 Required: 1. Calculate the plantwide predetermined overhead rate. 2. Complete the job cost sheet for Job Alpha.
ISE 2-7 Prder Costing; working Backwards 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 $15 per hour. During the year, the company started and completed only two jobs-Job Alpha, which used 54,500 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 $1,533,500 Job Omega Direct materials $235,000 Direct labor 345,000 Manufacturing overhead applied 184,000 Total job cost $764,000 Required: 1. Calculate the plantwide predetermined overhead rate. 2. Complete the job cost sheet for Job Alpha.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:EXERCISE 2–7 Job-Order Costing; Working Backwards LO2–1O , LO2-2 0, LO2-3 O
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 $15 per hour. During the year, the company started and completed only two jobs-Job
Alpha, which used 54,500 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
$1,533,500
Job Omega
Direct materials
$235,000
Direct labor
345,000
Manufacturing overhead applied
184,000
Total job cost
$764,000
Required:
1. Calculate the plantwide predetermined overhead rate.
2. Complete the job cost sheet for Job Alpha.
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