Question
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
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 $16.00 per hour. During the year, the company started and completed only two jobsJob Alpha, which used 69,400 direct labor-hours, and Job Omega. The job cost sheets for the these two jobs are shown below:
Job AlphaDirect materials?Direct labor?Manufacturing overhead applied?Total job cost$1,904,000
Job OmegaDirect materials$321,800Direct labor460,800Manufacturing overhead applied259,200Total job cost$1,041,800
Required:
1. Calculate the plantwide predetermined overhead rate.
2. Complete the job cost sheet for Job Alpha.
Direct material
Direct labor
manufacturing overhead applied
Total job cost
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