Question 3: Job Order Costing Time: 25 minutes Total: 10 marks Super Builders is a manufacturer of custom equipment and applies overhead to jobs on the basis of direct labour hours. Super Builders estimated $840,000 overhead costs and 60,000 direct labour hours for the year. Super Builders had 2 jobs in work in process inventory on January 1, 2015. The company started 2 more jobs during January. The following data was provided for January: Job 102 Job 103 Job 104 Job 105 Balance Jan. 1, 2015 $36,480 $19,020 so Direct Materials $34,420 $45,800 $30,480 $16,420 Direct Labour Cost $23,000 $32,500 $19,500 $9,720 Direct Labour Hours 4,600 6,500 3,900 1,944 By January 31, 2015, Job 102 and Job 103 were completed and Job 103 was sold. The rest of the jobs remained in process. Required: a. Calculate the plantwide overhead rate per direct labour hour. (2 marks) Perc direct labour hour= Estinaated overhead calls Direct labour hours 840000 = $14 Per direct 2 60000 Labour hour. b. Complete the job order cost sheets for all four jobs in January. (4 marks) Job 102 Job 103 Job 104 Job 105 Beginning Balance Direct Materials Direct Labour Overhead Applied Total Cost BUSI 2083 INTRODUCTION TO MANAGERIAL ACCOUNTING 110C. Calculate the work in process inventory on January 31, 2015: (1 mark) d. Calculate the finished goods inventory on January 31, 2015. (1 mark) e. Calculate the cost of goods sold for January. (1 mark) f. Assume Super Builders applies 40% markup on cost. What is the selling price of Job 103? (1 mark) BUSI 2083 INTRODUCTION TO MANAGERIAL ACCOUNTING 111