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The company designs corporate websites using a job costing system. Overhead support costs are split into Variable and Fixed components. Variable overhead is applied to
The company designs corporate websites using a job costing system. Overhead support costs are split into Variable and Fixed components. Variable overhead is applied to jobs based on direct labour hours (DLH) and Fixed overheads is applied based on indirect support hours (ISH). The following data related to a particular customer order started and completed in July. Quantity Rate Actual $ 25.00 Job 20-099 Direct Materials Direct Labour Indirect support hours 4 $ 15.00 per hour Overhead support costs are as follows: Units Budget $ 50,000 Annual Budget Variable Overheads Direct Labour Hours Fixed Overheads Indirect support hours 4,000 11,250 1,500 Required: 1. Compute the predetermined overhead rates for the year. 2. Compute the total cost for Job 20-099. Show cost detail breakdown. 3. What is the journal entry to record overhead applied to the job? 4. The job is completed and invoiced. What is the journal entry to close the job costs
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