Question 16 (of 33) 2.00 points MC Qu. 93 Cosi Company uses a job order costing.
ID: 2425016 • Letter: Q
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Question 16 (of 33) 2.00 points MC Qu. 93 Cosi Company uses a job order costing... Cosi Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. a cost of $10.00 per hour. What is Cosi Company's overhead application rate? Cosil expects to incur $770,000 of overhead during the next period, and expects to use 47000 labor hours at Cosi expects to incur $770,000 of 6.10%. 61.0%. o 164%. o 1638% o 66% References Multiple Choice MC Qu. 93 Cosi Company uses a job order costing.Explanation / Answer
Solution.
Question 17.
Total unit = 600
Total cost of finished goods = $11,100
Overhead applyed = $4,250 ( 85% of direct labor )
Direct labor (4,250 / 85% ) = $5,000
Direct material = $1,850 (Balancing Figure )
Q 18. Calculation of predetarmined overhead rate.
Budgeted overhead applied = $79,000
Budgeted direct Labor = $100,000
Predetermined rate = $79,000 / $100,000
= 79%.
Q.19. Calculation of predetermined overhead rate.
Expected labor hour = 200,000
Expected overhead of current period = $1,440,000
Predtermined overhead rate = $1,440,000 / 200,000
= $7.2 per direct labor hour.
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