Chapter 1, Problem 6EYCT

Royal Designs creates custom furniture. During November, it had applied an overhead of $162,000. Overhead is applied at the rate of 80% of direct labor cost. Direct labor wages average $32 per hour. How many direct labor hours did Royal Designs have for the month of November?

Can you help me solve this general accounting problem using the correct accounting process?

Meridian Corporation applies overhead costs to jobs on the basis of direct labor costs. Job R, which was started and completed during the current period, shows charges of $8,250 for direct materials, $12,500 for direct labor, and $7,500 for overhead on its job cost sheet. Job S, which is still in process at year-end, shows charges of $4,200 for direct materials and $6,800 for direct labor. a. Should any overhead cost be applied to Job S at year-end? b. How much overhead cost should be applied to Job S?