Question 11 options:

XYZ Company began operations during 2011 and employs a job-order costing system that applies overhead to jobs using direct labor hours as the activity level. For 2011, XYZ Company had total estimated overhead of $229,500 and total estimated direct labor hours of 25,500.

Listed below is a summary of events and transactions that occurred during 2011:

a. XYZ Company purchased 80,000 pounds of direct materials at $4.20 per pound.

b. XYZ began work on three jobs. Direct materials used for each job were:

Job A-1 .................. 17,000 pounds Job A-2 .................. 25,000 pounds Job A-3 .................. 30,000 pounds

c. Direct labor hours used for each job were:

Job A-1 .................. 9,800 hours Job A-2 .................. 7,800 hours Job A-3 .................. 8,400 hours

Direct labor workers are paid $12 per hour.

d. The following additional costs were incurred:

Manufacturing Facility Administrative Facility

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