(Cost flow s) For 2006, Brown Mfg. decided to apply overhead to units based on direct labor hours. The company’s Work in Process Inventory account on January 31 appeared as follows:

The beginning balance of $136,000 contained 5,000 direct labor hours. Dur¬ ing January, 14,000 direct labor hours were recorded. Only one job was still in process on January 31. That job had $41,500 in direct material and 3,700 direct labor hours assigned to it.

a. What was the predetermined overhead application rate for 2006?

b. What was the average direct labor rate per hour?

c. What was the balance in Work in Process Inventory at the end of January?

d. What was the total cost of jobs completed in January?LO1.

Transcribed Image Text:

Beginning balance Direct material Direct labor Work in Process Inventory 136,000 261,400 Cost of completed jobs 175,000 Applied overhead 124,600