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Posted on Jul 18, 2024

Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor hours. For job costing purposes, it uses an

Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially, accordingly, It has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many Jobs completed by the company during the year. Your goal is to complete the table shown below and comment on the insights that it provides: Job 1 Direct Materials 2 ? 2 2 Direct Labor ? ? 2 2 2 Sales $2,400 $5,400 $9,000 $1,450 $2,200 $7,000 $1,700 $1,600 $8,000 $4,100 $3,200 $2,800 Applied Overhead 7 7 ? 7 7 2 ? 2 ? 7 2 Total Job Cost ? 2 ? 2 ? ? NOWN Gross Margin ? 7 ? ? ? ? 2 ? 2 ? ? ? 7 2 2 2 ? ? 2 ? Click here to download the Excel template, which you will use to answer the questions that follow. Click here for a brief tutorial on PlvotTables in Excel. Click here for a brief tutorial on VLOOKUP. In Excel Required: 5. Go to the tab titled "Job Profitability": a. Using formulas that refer to your answers from requirements 1-4, calculate the direct materials, direct labor, and applied overhead cost for each of the 12 jobs. (Hint: Use VLOOKUP to reference values from the pivot tables you created in requirements 1 and 2.) b. What is the amount of applied overhead for Jobs 4 and 9? Job 4 Job 9 The applied overhead is K18 upon recovered warbooks? Your recent changes were saved. Do you want to continue working where you left off? 4 * A B C D E F G H J 1 Direct Materials Direct Labor Applied Overhead Total Job Cost Gross Margin 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Job Sales 1 $ 2,400.00 2 $ 5,400.00 3 $ 9,000.00 4 $ 1,450.00 5 $ 2,200.00 6 $ 7,000.00 7 $ 1,700.00 8 $ 1,600.00 9 $ 8,000.00 10 $ 4,100.00 11 $ 3,200.00 12 $ 2,800.00 Pivot Table V P Direct Materials Requisitions Sheet Direct Labor Summary Heady Estimated MOH Job Profitability Watural C Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially, accordingly, It has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many Jobs completed by the company during the year. Your goal is to complete the table shown below and comment on the insights that it provides: Job 1 Direct Materials 2 ? 2 2 Direct Labor ? ? 2 2 2 Sales $2,400 $5,400 $9,000 $1,450 $2,200 $7,000 $1,700 $1,600 $8,000 $4,100 $3,200 $2,800 Applied Overhead 7 7 ? 7 7 2 ? 2 ? 7 2 Total Job Cost ? 2 ? 2 ? ? NOWN Gross Margin ? 7 ? ? ? ? 2 ? 2 ? ? ? 7 2 2 2 ? ? 2 ? Click here to download the Excel template, which you will use to answer the questions that follow. Click here for a brief tutorial on PlvotTables in Excel. Click here for a brief tutorial on VLOOKUP. In Excel Required: 5. Go to the tab titled "Job Profitability": a. Using formulas that refer to your answers from requirements 1-4, calculate the direct materials, direct labor, and applied overhead cost for each of the 12 jobs. (Hint: Use VLOOKUP to reference values from the pivot tables you created in requirements 1 and 2.) b. What is the amount of applied overhead for Jobs 4 and 9? Job 4 Job 9 The applied overhead is K18 upon recovered warbooks? Your recent changes were saved. Do you want to continue working where you left off? 4 * A B C D E F G H J 1 Direct Materials Direct Labor Applied Overhead Total Job Cost Gross Margin 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Job Sales 1 $ 2,400.00 2 $ 5,400.00 3 $ 9,000.00 4 $ 1,450.00 5 $ 2,200.00 6 $ 7,000.00 7 $ 1,700.00 8 $ 1,600.00 9 $ 8,000.00 10 $ 4,100.00 11 $ 3,200.00 12 $ 2,800.00 Pivot Table V P Direct Materials Requisitions Sheet Direct Labor Summary Heady Estimated MOH Job Profitability Watural C