Overhead Application and Job-Order Costing Heurion Company is a job-order costin
ID: 2424942 • Letter: O
Question
Overhead Application and Job-Order Costing
Heurion Company is a job-order costing firm that uses a plantwide overhead rate based on direct labor hours. Estimated information for the year is as follows:
Heurion worked on five jobs in July. Data are as follows:
By July 31, Jobs 741 and 743 were completed and sold. The remaining jobs were in process.
Overhead $789,000 Direct labor hours 100,000 Job 741 Job 742 Job 743 Job 744 Job 745 Balance July 1 Direct materials $29,870 $55,215 $27,880 0 SO $25,500 $39,800 $14,450 $13,600 $8,420 Direct labor cost Direct labor hours $61,300 $48,500 $28,700 $24,500 $21,300 4,000 3,400 1,980 1,600 1,400Explanation / Answer
Answer:
1. Plantwide overhead rate / Overhead per direct labor hour = $789,000 / 100,000 = $7.89 per hour
2. Job-order cost sheets
3. Balance in Work in Process on July 31 = Total cost of Job742 + Job744 + Job745 = 170,341 + 50,724 + 40,766 = $261,831.
4. Cost of goods sold for July = Total cost of Job 741 + Job 743 = 148,230 + 86,652$234,882
(1)Job741 (2)Job742 (3)Job743 (4)Job744 (5)Job745 (a) Balance July 1 29,870 55,215 27,880 - - (b) Direct materials 25,500 39,800 14,450 13,600 8,420 ( c)Direct labor costs 61,300 48,500 28,700 24,500 21,300 (d) Direct labor hours 4000 3400 1980 1600 1400 (e) Overhead 7.89 * Direct labor hours 31,560 26,826 15,622 12,624 11,046 Total costs (a+ b+ c+ e) 148,230 170,341 86,652 50,724 40,766Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.