4-53: First, assume that the company uses a plantwide overhead rate based on direct labor dollars. Also assume that estimated information for the year includes Direct labor dollars of $1,642,000. Finally, assume that the company sells its jobs at a selling price equal to (cost + 25% of cost markup).

Heurion Company is a job-order costing firm that uses a plantwide overhead rate based in direct labor hours. Estimated information for the year is as follows:

Overhead: $789,000

Direct labor hours: $100,000

Heurion worked on five jobs in July. Data are as follows:

Job 741 Job 742 Job 743 Job 744 Job 745

Balance July 1 $29,870 52,215 27,880 0 0

Direct materials $25,500 39,800 14,450 13,600 8,420

Direct labor cost $61,300 48,500 28,700 24,500 21,300

direct labor hours 4,000 3,400 1,980 1,600 1,400

By July 31, Jobs 741 and 743 were completed and sold. Remaining jobs were in process.

1. Calculate the plantwide overhead rate for Heurion company

2. Prepare job-order costs sheets for each job showing all costs through July 31

3. Calculate the balance inn work inn process on July 30

4. Calculate Cost of goods sold for July