Kansas Company uses a job costing accounting system for its production costs. The company uses a predetermined overhead rate based on direct labor-hours to apply overhead to indlvidual jobs. The company prepared an estimate of overhead costs at different. volumes for the current year as follows. The expected volume is 180,000 direct labor-hours for the entire yeac. The following information is for March, when Jobs 6023 and 6024 were completed. Factory direct labor-hours (DLH) Job 6023 Job 6024 9,500 DLH Job 6025 8,500 DLH 6,000 DIH Labor costs Direct labor wages (al1 hours \& \$7) Indirect labor wages (14,000 houra) $168,000 63,000 108,000 Supervisory salaries Building occupancy costa (heat, Iight, depreciation, etc.) Factory facilities Sales and administrative offices \$ 20,500 Factory equipment costa Power Repairs and maintenance $11,000 other 4,0007,000$22,000 Required: a. Compute the predetermined overhead rate (combined fixed and variable) to be used to apply overhead to indlvidual jobs during the year. (Note: Regardless of your answer to requirement [a] assume that the predetermined overhead rate is Sto per direct labor-houc. Use this amount in answering requirements (b) through (e).) b. Compute the total cost of Job 6023 when it is finished. c. How much of factory overhead cost was applied to Job 6025 during March? d. What total amount of overthead was applied to jobs during March? e. Compute actual factory overhead incurred during March. f. At the end of the yeat, Kansos Company had the following account balances: Assuming that the overapplied overhead is not material, show the new account balances in the following table. Kansas Company uses a job costing accounting system for its production costs. The company uses a predetermined overhead rate based on direct labor-hours to apply overhead to indlvidual jobs. The company prepared an estimate of overhead costs at different. volumes for the current year as follows. The expected volume is 180,000 direct labor-hours for the entire yeac. The following information is for March, when Jobs 6023 and 6024 were completed. Factory direct labor-hours (DLH) Job 6023 Job 6024 9,500 DLH Job 6025 8,500 DLH 6,000 DIH Labor costs Direct labor wages (al1 hours \& \$7) Indirect labor wages (14,000 houra) $168,000 63,000 108,000 Supervisory salaries Building occupancy costa (heat, Iight, depreciation, etc.) Factory facilities Sales and administrative offices \$ 20,500 Factory equipment costa Power Repairs and maintenance $11,000 other 4,0007,000$22,000 Required: a. Compute the predetermined overhead rate (combined fixed and variable) to be used to apply overhead to indlvidual jobs during the year. (Note: Regardless of your answer to requirement [a] assume that the predetermined overhead rate is Sto per direct labor-houc. Use this amount in answering requirements (b) through (e).) b. Compute the total cost of Job 6023 when it is finished. c. How much of factory overhead cost was applied to Job 6025 during March? d. What total amount of overthead was applied to jobs during March? e. Compute actual factory overhead incurred during March. f. At the end of the yeat, Kansos Company had the following account balances: Assuming that the overapplied overhead is not material, show the new account balances in the following table
