Divine Construction, Inc. is a home builder in Arizona. Divine uses a job order costing system in which each house is a job. Because it constructshouses, the company uses an account titled Construction Overhead. The company applies overhead based on estimated direct labor costs. For theyear, it estimated construction overhead of $1,000,000 and total direct labor cost of $5,000,000. The following events occurred during August:

LOADING...

(Click the icon to view theevents.)

Read the requirementsLOADING...

.a. Purchased materials onaccount, $400,000

b. Requisitioned direct materials and used direct labor in construction. Recorded the materials requisitioned.

Direct Materials

Direct Labor

House 402

$

52,000

$

49,000

House 403

63,000

31,000

House 404

61,000

58,000

House 405

81,000

56,000

c. The company incurred total wages of $300,000. Use the data from Item b to assign the wages. Wages are not yet paid.

d. Depreciation of constructionequipment, $6,100

e. Other overhead costsincurred: Equipment rentals paid incash, $38,000; Worker liability insuranceexpired, $7,000.

f. Allocated overhead to jobs.

g. Housescompleted: 402, 404

h. House sold onaccount: 404 for