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Job 101 Job 102 Direct materials used...... $ 15,000 $ 12,500 Direct labor. hours.used. 170 80 Leisure Heating & Cooling installs and services commercial heating
Job 101 Job 102 Direct materials used...... $ 15,000 $ 12,500 Direct labor. hours.used. 170 80 Leisure Heating & Cooling installs and services commercial heating and cooling systems. Leisure uses job costing to calculate the cost of its jobs. Overhead is allocated to each job based on the number of direct labor hours spent on that job. At the beginning of the current year, Leisure estimated that its overhead for the coming year would be $66,400. It also anticipated using 4,150 direct labor hours for the year. 1. What is Leisure's predetermined overhead rate based on direct labor hours? 2. Calculate the overhead to be allocated to each of the two jobs based on direct labor hours. 3. What is the total cost of Job 101? What is the total cost of Job 102
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