Problem #4 Predetermined Overhead Rate

Broadway Corporation uses job order costing with a predetermined overhead rate based on machine hours to apply overhead. The following costs were provided after Job 500 & 510 were complete.

Given Estimated Annual Data:

Machine Hours 55,000 DL rate/hour $8

Unit Overhead 345,000 Support labor (4,000 hours) 17,000

Facility Overhead 150,000 Supervisor Salaries 36,000

Total Overhead 495,000

Beginning Inventory

Raw Materials and Supplies $10,500

Work in Process (Job 500 only) 54,000

Finished Goods 112,500

Purchases

Raw Materials 135,000

Supplies 15,000

Materials Requisitioned into production

Job 500 45,000

Job 510 37,500

Job 520 25,500

Supplies 6,000

Direct Labor Hours

Job 500 2,000

Job 510 3,000

Job 520 3,500

Machine Hours

Job 500 3,500

Job 510 3,000

Job 520 2,000

Factory

Utilities 6,500

Equipment 8,000

REQUIRED:

Compute the Total Job Costs and total overhead applied to all three jobs.

Beginning Balance.........Job 50.............Job 51.......... Job 52 ..........Totals

DM

DL

MOH (applied)

Total job costs

Determine the actual overhead incurred

Indirect materials (supplies)

Support labor wages

Supervisor Salaries

Factory utility costs

factory equipment costs

Total