Biotechnologies Unlimited, Inc. (BUI), located in Sydney, Nova Scotia, is a small but growing biotech quality analysis organization that tests pesticides before they are used by farmers. The testing procedures are specific to the individual pesticides used because reagents used for testing react differently based on their composition and the quantity used. How they are introduced into the pesticides for testing is also important. During the month of December 2016, it completed one job (reference number: KS 2016-337); records pertaining to this job are as follows: Amount $ 890 230 Date 2/12/16 4/12/16 11/12/16 13/12/16 20/12/16 22/12/16 Document M-3316 L-4423 L-4437 M-3399 M.1407 L-4509 530 1,750 200 700 The documents with the references M and L pertain to direct materials and direct labour, respectively. BUI currently allocates overhead using direct labour cost as the allocation base. For the year 2016, it estimated $590,000 as the overhead amount and $472,000 for direct labour costs. Required: 1. Compute the overhead allocation rate for 2016. Predetermined overhead rate 2. Compute the total costs of the job. Direct materials Direct labour Overhead 2. Compute the total costs of the job. Direct materials Direct labour Overhead 3. Prepare a job cost sheet for job KS 2016-337. Dec 01, 2016 Dec 23, 2016 JOB COST SHEET Number KS2014-337 Date initiated Department Commerical Date completed Description Pesticide testing Units completed Direct Materials Direct Labour Reg. No. Amount Time-Sheet Hours Amount DL Cost Overhead Rate Amount Cost Summary Job Completion Status Progress to date Date Total Cost Unit Cost $ 1,225.00 Biotechnologies Unlimited, Inc. (BUI), located in Sydney, Nova Scotia, is a small but growing biotech quality analysis organization that tests pesticides before they are used by farmers. The testing procedures are specific to the individual pesticides used because reagents used for testing react differently based on their composition and the quantity used. How they are introduced into the pesticides for testing is also important. During the month of December 2016, it completed one job (reference number: KS 2016-337); records pertaining to this job are as follows: Amount $ 890 230 Date 2/12/16 4/12/16 11/12/16 13/12/16 20/12/16 22/12/16 Document M-3316 L-4423 L-4437 M-3399 M.1407 L-4509 530 1,750 200 700 The documents with the references M and L pertain to direct materials and direct labour, respectively. BUI currently allocates overhead using direct labour cost as the allocation base. For the year 2016, it estimated $590,000 as the overhead amount and $472,000 for direct labour costs. Required: 1. Compute the overhead allocation rate for 2016. Predetermined overhead rate 2. Compute the total costs of the job. Direct materials Direct labour Overhead 2. Compute the total costs of the job. Direct materials Direct labour Overhead 3. Prepare a job cost sheet for job KS 2016-337. Dec 01, 2016 Dec 23, 2016 JOB COST SHEET Number KS2014-337 Date initiated Department Commerical Date completed Description Pesticide testing Units completed Direct Materials Direct Labour Reg. No. Amount Time-Sheet Hours Amount DL Cost Overhead Rate Amount Cost Summary Job Completion Status Progress to date Date Total Cost Unit Cost $ 1,225.00
