PART 5 Job Order Costing To keep records of the actual cost of a special order icb, a Job Order Cost System has been developed Overhead is applied at the rate of 50% of the direct labor cost. Job Order Costing Section On January 1, 20x2. Division S began Job 2407 for the client. THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,075 Lamp Kits $16.75 per kit 9-Jan 4.100 sets of Lamp Kits were requisitioned, including all those in the Beginning Inventory 17-Jan Payroll of 500 Direct Labor Hours $9 85 per hour 30-Jan Payroll of 640 Direct Labor Hours $10.10 per hour. 30-Jan 3.990 lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing Month End Overhead Information Actual Variable Manufacturing Overhead Actual Fixed Manufacturing Overhead $ 1,549.80 $ 40,123.45 Round to two places SA # Cost of Direct Material incurred in Manufacturing Job 2407 (13.01) Cost of Direct Labor incurred in Manufacturing Job 2407 (13.02) Cost of Manufacturing Overhead Applied to Job 2407 (13.033 Cost of manufacturing one lamp (13.04)