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Kansas Lompany uses a job cost ng accounting system tor its production costs. I he company uses a predeterm ned overhead rate based on direct
Kansas Lompany uses a job costng accounting system tor its production costs. I he company uses a predetermned overhead rate
based on direct laborhours 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 direct laborhours for the entire year. The following information is for March, when Jobs and
were completed.
Required:
a Compute the predetermined overhead rate combined fixed and variable to be used to apply overhead to individual jobs during the
year.
Note: Regardless of your answer to requirement a assume that the predetermined overhead rate is $ per direct laborhour. Use this
amount in answering requirements through
b Compute the total cost of Job when it is finished.
c How much of factory overhead cost was applied to Job during 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:
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