7 View Policies Current Attempt in Progress The following data were taken from the records of Oriole Enterprises, a Canadian manufacturer that uses a normal job order costing system Work in Process, December 1 Job Number 70 75 Direct materials $1,890 $2,520 $1.580 Direct labour 1,260 2,520 630 Applied overhead 630 1420 470 Total $3,780 $6,460 $2,680 During December, the company worked on jobs numbered 70 through 90 and incurred the following costs Job Number 70 75 90 85 90 Total Direct materials $630 $950 $1.260 $1,420 $1.580 $5.840 Direct labour $790 $1,580 $3,150 $2.360 $6,300 $14.180 Direct labour hours 50 110 210 160 420 950 Additional information 1 23 Total overhead costs are applied to jobs on the basis of direct labour hours worked, At the beginning of the year, the company estimated that total overhead costs for the year would be $157.560, and the total labour hours worked would be 13.130 The balance in the Departmental Overhead Control account on December 1 was $168.010. Actual direct labour hours for the previous 11 months January through November) were 11.810 3. There were no jobs in finished goods on December 1 4 Expenses for December were as follows (not yet recorded in the books of account Direct materials purchased $7.880 Salaries Production cer 1580 Supervisor 2310 Depreciation plant and equipment 2410 Factory Supplie 1380 Sales staff salaries 9660 Ulfactory 1890 Administrative e 9980 $37430 The companyes off all under berapplerat e Cost of Goods Soid at the and of the sa Jobs 70 80 83 and One completed during Detamber Only 10 remained on December 2 Question 22 of 23 c > Administrative expenses 9.980 $37,490 -/12 E The company writes off all under-or over-applied overhead to Cost of Goods Sold at the end of the year Jobs 70, 80, 85, and 90 were completed during December. Only Job 90 remained in finished goods on December 31 5. 6. 7 8 Cost of goods sold to December 1 was $37,490. The company charges its customers 250% of total manufacturing cost Using the information given, calculate the following amounts: 1 The predetermined overhead rate used to apply overhead to products $ per labour hour 2 The cost of ending work in process inventory 3 The cost of goods manufactured in December The unadjusted gross margin for December eTextbook and Media List of Accounts Question Part Score Calculate the under- or over-applied overhead for the year Overhead S What effect would this amount have on net income? Net income will be bys eTextbook and Medi List of Accounts Question Pat