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Job Costs Using a Plantwide Overhead Rate Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $300,000, and budgeted direct labor hours were 20,000. The average wage rate for direct labor is expected to be $30 per hour. During June, Perrin Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Beginning balance Materials requisitioned Direct labor cost $24,100 Required: 19,100 10,200 $33,600 21,600 18,700 1. Calculate the overhead rate based on direct labor cost. % of direct labor cost Job 41 $17,600 13,400 8,050 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. Job 40 is the only job in Finished Goods Inventory and will remain there until the customer accepts delivery and pays. Jobs 41 and 42 remain unfinished at the end of the month. Job 42 2. Set up a simple job-order cost sheet for all jobs in process during June. Perrin Company Job-Order Cost Sheets $1,900 14,700 5,600

Job Costs Using a Plantwide Overhead Rate Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $300,000, and budgeted direct labor hours were 20,000. The average wage rate for direct labor is expected to be $30 per hour. During June, Perrin Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Beginning balance Materials requisitioned Direct labor cost $24,100 Required: 19,100 10,200 $33,600 21,600 18,700 1. Calculate the overhead rate based on direct labor cost. % of direct labor cost Job 41 $17,600 13,400 8,050 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. Job 40 is the only job in Finished Goods Inventory and will remain there until the customer accepts delivery and pays. Jobs 41 and 42 remain unfinished at the end of the month. Job 42 2. Set up a simple job-order cost sheet for all jobs in process during June. Perrin Company Job-Order Cost Sheets $1,900 14,700 5,600

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Job Costs Using a Plantwide Overhead Rate Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $300,000, and budgeted direct labor hours were 20,000. The average wage rate for direct labor is expected to be $30 per hour. During June, Perrin Company worked on four jobs. Data relating to these four jobs follow: Job 41 Job 42 $1,900 14,700 5,600 Beginning balance Materials requisitioned Direct labor cost Job 39 Required: $24,100 $33,600 21,600 18,700 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. Job 40 is the only job in Finished Goods Inventory and will remain there until the customer accepts delivery and pays. Jobs 41 and 42 remain unfinished at the end of the month. 19,100 10,200 Job 40 1. Calculate the overhead rate based on direct labor cost. % of direct labor cost $17,600 13,400 8,050 2. Set up a simple job-order cost sheet for all jobs in process during June. Perrin Company Job-Order Cost Sheets
Transcribed Image Text:Job Costs Using a Plantwide Overhead Rate Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $300,000, and budgeted direct labor hours were 20,000. The average wage rate for direct labor is expected to be $30 per hour. During June, Perrin Company worked on four jobs. Data relating to these four jobs follow: Job 41 Job 42 $1,900 14,700 5,600 Beginning balance Materials requisitioned Direct labor cost Job 39 Required: $24,100 $33,600 21,600 18,700 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. Job 40 is the only job in Finished Goods Inventory and will remain there until the customer accepts delivery and pays. Jobs 41 and 42 remain unfinished at the end of the month. 19,100 10,200 Job 40 1. Calculate the overhead rate based on direct labor cost. % of direct labor cost $17,600 13,400 8,050 2. Set up a simple job-order cost sheet for all jobs in process during June. Perrin Company Job-Order Cost Sheets
Balance: June 1 Total Job 39 New overhead rate= $ Job 40 $ Job 41 $ How would the cost of the jobs be affected? 3. What if the expected direct labor rate at the beginning of the year was $24 instead of $30? What would the overhead rate be? If required, round your overhead rate answer to one decimal place. New budgeted direct labor cost = $ % of direct labor cost Job 42 $
Transcribed Image Text:Balance: June 1 Total Job 39 New overhead rate= $ Job 40 $ Job 41 $ How would the cost of the jobs be affected? 3. What if the expected direct labor rate at the beginning of the year was $24 instead of $30? What would the overhead rate be? If required, round your overhead rate answer to one decimal place. New budgeted direct labor cost = $ % of direct labor cost Job 42 $
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