Winston Company applies overhead cost to jobs on the basis of direct labor cost.

Question

Winston Company applies overhead cost to jobs on the basis of direct labor cost. Job X, which was started and completed during the current period, shows charges of $5,200 for direct materials, $9,200 for direct labor, and $5,612 for overhead on its job cost sheet. Job Q, which is still in process at year-end, shows charges of $3,200 for direct materials, and $5,400 for direct labor.

Calculate overhead cost to be added to Job Q at year-end. Do not round answer.

Winston Company applies overhead cost to jobs on the basis of direct labor cost. Job X, which was started and completed during the current period, shows charges of $5,200 for direct materials, $9,200 for direct labor, and $5,612 for overhead on its job cost sheet. Job Q, which is still in process at year-end, shows charges of $3,200 for direct materials, and $5,400 for direct labor.

Calculate overhead cost to be added to Job Q at year-end. Do not round answer.

Explanation / Answer

Overhead rate =5,612/9200 =0.61

overhead cost to be added to Job Q = 5,400*0.61 =$3294

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