Jorgensen Cabinets is a custom cabinet builder. They recently completed a set of

Question

Jorgensen Cabinets is a custom cabinet builder. They recently completed a set of kitchen cabinets (Job Number 12478), as summarized below:

Jorgensen applies overhead to jobs at a rate of $14 per direct labor hour.

  Job Number : 12478   Date Started: 8/05/2008   Date Completed: 8/25/2008   Description: Butternut kitchen cabinets Applied Direct Materials Direct Labor Manufacturing Overhead Req. No Amount Ticket Hours Amount Hours Rate Amount 385 $ 340 128 20     $ 400 391 325 130 24     504 395 120 133 8     156 401 435 141 12     312 Total $ 1,220 Total 64     $ 1,372 Cost Summary            Direct Materials Cost $ 1,220            Direct Labor Cost 1,372            Applied Manufacturing Overhead ?            Total Cost ?

Explanation / Answer

Hi,

Please find the detailed answer as follows:

Part A:

Overhead applied to Job Number 12478 = Number of Direct Labor Hours*Overhead Rate = 64*14 = 896

Part B:

Total Cost = 1220 (Direct Material Cost) + 1372 (Direct Labor Cost) + 896 (Overhead Cost) = 3488

Thanks.

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