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Exercise 2-7 Job-Order Costing; Working Backwards [LO2-1, LO2-2, LO2-3] Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as
Exercise 2-7 Job-Order Costing; Working Backwards [LO2-1, LO2-2, LO2-3] Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as the allocation base. The company pays its direct laborers $13.50 per hour. During the year, the company started and completed only two jobs-Job Alpha, which used 68,700 direct labor-hours, and Job Omega. The job cost sheets for the these two jobs are shown below: Job Alpha Direct materials Direct labor Manufacturing overhead applied Total job cost $ 1,722,000 Job Omega Direct materials Direct labor Manufacturing overhead applied $237,050 368,550 177,450 $ 783,050 Total job cost Required 1. Calculate the plantwide predetermined overhead rate. 2. Complete the job cost sheet for Job Alpha
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