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PARI 5 Job Order Costing To keep records of the actual cost of a special order job, a Job Order Cost System has been developed Overhead is applied at the rate of 50% of the direct labor cost. Job Order Costing Section On January 1, 20x2. Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5 Jan Purchased 4,000 Lamp Kits @ $16.40 per kit 9 Jan 4,050 sets of Lamp Kits were requisitioned, including all those in the Beginning Inventory 17-Jan Payroll of 620 Direct Labor Hours $9.60 per hour. 30 Jan Payrol of 670 Direct Labor Hours $9.85 per hour. 30 Jan 3.990 lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing. Month End Overhead Information Actual Variable Manufacturing Overhead Actual Fored Manufacturing Overhead $ 1,367.40 $ 40.873.45 Round to two places, Se Cost of Direct Material incurred in Manufacturing Job 2407 .40 ..420.00 OG,120.00B|(13.01) Cost of Direct Labor incurred in Manufacturing Job 2407 -5,952 551.50 003.02) -6549.5 Total = 12.551.50 Cost of Manufacturing Overhead Applied to 00 2407 x 50% 275.751 Cost of manufacturing one lamp 15.5 573.03) (13.04)