Question
Problem 19-1A (Algo) Computing job costs and overhead rate; assigning costs to inventory LO C1, P3 Skip to question [The following information applies to the
Problem 19-1A (Algo) Computing job costs and overhead rate; assigning costs to inventory LO C1, P3
Skip to question
[The following information applies to the questions displayed below.]
At the end of June, the job cost sheets at Ace Roofers show the following costs accumulated on three jobs.
| At June 30 | Job 5 | Job 6 | Job 7 |
|---|---|---|---|
| Direct materials | $ 18,000 | $ 34,500 | $ 28,500 |
| Direct labor | 11,000 | 17,200 | 24,000 |
| Overhead applied | 5,500 | 8,600 | 12,000 |
Additional Information
- Job 5 was started in May, and the following costs were assigned to it in May: direct materials, $7,500; direct labor, $3,300; and applied overhead, $2,400. Job 5 was finished in June.
- Job 6 and Job 7 were started in June; Job 6 was finished in June, and Job 7 is to be completed in July.
- Overhead cost is applied with a predetermined rate based on direct labor cost. The predetermined overhead rate did not change across these months.
Problem 19-1A (Algo) Part 3
3. What is the predetermined overhead rate?
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