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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
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 individual 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 yeat. The following information is for March whien Jobs 6023 and 6024 were completed. Required: 0. Compute the predetermined overhead rate (combined fixed and vatiable) to be used to apply oveihead to individual jobs during the year (Note: Regardless of your answer to requirement [a], assume that the predetermined ovechead rate is $10 per direct labor-hour. Use this amount in answering requirements [b] through [c]] b. Compute the total cost of Job 6023 when it is finished. c. How much of factory overhead cost was applied to Job 6025 dunng March? d. What total amount of overhead was applied to jobs during March? e. Compute actual factory overhead incurred during March. f. At the end of the year, Kansas Company had the following account balances: Assuming that the overapplied overhead is not material, show the new account balances in the foliowing table
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