Am WORKSHOP 02 PREPARATION REQUIREMENTS Ted Drill):1 the controller for Elraggg,r Manufacturing Co1 is in the process of analysing the overhead costs for the month of October. He has gathered the following data for the month. Labor Direct Labor hours Job 949 3,500 Job 950 3,000 Job 951 2,000 Labor costs Direct lahor wages $204,000 Indirect labor wages 15,000 Supervisory salaries 6,000 Material InVentories 1st October Raw material and supplies 10,500 WEP (Job 949) 54,000 Finished Goods {Job 948} 112,500 Purchases of raw materials and supplies Raw material $135,000 Supplies 15,000 Direct materials and Supplies Euisitioned for production Job 949 $45,000 Job 950 37,500 Joh 951 25,500 Supplies 12,000 Other Depreciation (Straight line method} $6,400 Propert'f,r taxes 1,5 00 Plant Electricity 4,100 Advertising 1,500 Plant Insurance 1,000 Selling expenses 1,000 Material handling 1,500 The rm's job-order costing systEm use-s direct labour hours as the cost. driver for otterhead application. The rm uses normal costing. In December of the preceding year, in budgeting for the current year, Ted estimated that the normal annual usage is 120,000 direct labour hours and predicted $606,000 in overhead costs. During October the rm completed Job 949 and Job 950. Job 948 and Job 950 were sold on account, producing a 10% markup. 1. Calculate: a. Total Actual Deerhead b. Calculate the Actual DH Rate based on direct labour hours c. Determine the DH amount allocated to eachjob. 2. Identify the jobs that represent the closing balances of WIP, FE and COGS. 3. Using Job Cost Sheets: a. Recognise costs ofjobs in opening ind-Triton},r balances b. For eachjob Worked this month, calculate DM used. DL used. OH Applied and the total cost of Jobs at end of the month. 4. Prepare a Schedule of Cost of Goods Sold for the month. 5. Calculate the amount of tinder- or over- applied OH (OH variance]. 6. Diapose of the DH variance using: a. Direct write-off method [to COGS} b. Proration method. '.-'. Supposed that this company uses direct unite-off method to dispose of the OH variance. Prepare a Prot and Loss Statement for the month (to the Gross Margin only)