Overhead Application and Job-Order Costing

Heurion Company is a job-order costing firm that uses a plantwide overhead rate based on direct labor hours. Estimated information for the year is as follows:

Overhead	$789,000
Direct labor hours	100,000

Heurion worked on five jobs in July. Data are as follows:

	Required:
1.	Calculate the plantwide overhead rate for Heurion Company. Round to the nearest cent.
2.	Prepare job-order cost sheets for each job showing all costs through July 31. Round all amounts to the nearest dollar.
3.	Calculate the balance in Work in Process on July 31.
4.	Calculate Cost of Goods Sold for July.

By July 31, Jobs 741 and 743 were completed and sold. The remaining jobs were in process.

Job 741 Job 742 Job 743 Job 744 Job 745 Balance July 1 Direct materials $29,870 $55,215 $27,880 0 SO $25,500 $39,800 $14,450 $13,600 $8,420 Direct labor cost Direct labor hours $61,300 $48,500 $28,700 $24,500 $21,300 4,000 3,400 1,980 1,600 1,400