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Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following.

Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following.

  

Work in Process Inventory
Date Explanation Debit Credit Balance
Dec. 31 Direct materials cost 1,700,000 1,700,000
31 Direct labor cost 250,000 1,950,000
31 Overhead applied 782,000 2,732,000
31 To finished goods 2,653,000 79,000


1.
Determine the predetermined overhead rate used (based on direct materials cost).
2. Only one job remained in work in process inventory at December 31. Its direct materials cost is $26,000. How much direct labor cost and overhead cost are assigned to this job?

Only one job remained in work in process inventory at December 31. Its direct materials cost is $26,000. How much direct labor cost and overhead cost are assigned to this job?

Total cost of job in process
Direct labor cost

Determine the predetermined overhead rate used (based on direct materials cost).

Overhead Rate
Choose Numerator: / Choose Denominator: = Overhead Rate
/ = Overhead rate
/

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