Hahn Company uses a job-order costing system. Its plantwide predetermined overhe

Question

Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as the allocation base. The company pays its direct laborers $15.50 per hour. During the year, the company started and compl Alpha, which used 64,400 direct labor-hours, and Job Omega. The job cost sheets for the these two jobs are Manufacturing overhead applied Total job cost $ 1,79e s 276 Direct materials Direct Labor Manufacturing overhead applied Total job cost 401,450 Required: 1. Calculate the plantwide predetermined overhead rate. 2. Complete the job cost sheet for Job Alpha Complete this question by entering your answers in the tabs below oe

Explanation / Answer

1. Direct Labour hours for Job Omega = 401,450/15.5 = 25900 hours

Plantwide Overhead Rate = 220,150/25900 = $8.5 per hour

2. Job Alpha:

Direct materials
(1790000-998200-547400) 244400 Direct Labour
(64400*15.5) 998200 Manufacturing overhead applied
(64400*8.5) 547400 Total Job Cost 1790000

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