APPLYING OVERHEAD TO JOBS, COSTING JOBS Herron Company designs and builds retaining walls for individual customers. On August 1, there were two jobs in process: Job 730 with a beginning balance of $10,400, and Job 731 with a beginning balance of $8,600. Herron applies overhead at the rate of

$11 per direct labor hour. Direct labor wages average $10 per hour.

Data on August costs for all jobs are as follows:

Job 730 Job 731 Job 732 Job 733 Direct materials $1,200 $8,000 $2,100 $3,000 Direct labor cost 1,800 4,000 200 800 During August, Jobs 732 and 733 were started. Job 730 was completed on August 17, and the client was billed at cost plus 40 percent. All other jobs remained in process.

Required:

. Calculate the number of direct labor hours that were worked on each job in August.

. Calculate the overhead applied to each job during the month of August.

. Prepare job-order cost sheets for each job as of the end of August.

. Calculate the balance in Work in Process on August 31.

. What is the price of Job 730?

Exercise