Part 3) computation: Applying factory overhead to production using the 3 most common Methods.

1. Determine the factory overhead cost of a job using: A) the direct labor cost method B) the direct labor hour method C) the machine hour method. 2. Also indicate the total cost of each job.

D) For all 3 cases the Direct Materials used is at $30,000 and the Direct Labor Cost is at $19,200.

Case One: The direct labor cost method is used and the pre-determined factory overhead rate is at 150%.

Case Two: The direct labor hour method is used in applying factory overhead and the rate is $30 an hour. The number of direct labor hours worked on the job was 550. First calculate the cost of factory overhead and then the total job cost.

Case Three: The machine hour method is used and the rate is $27.75 in applying factory overhead. The number of machine hours on the job was at 645. Calculate the cost of factory overhead and the total job cost.