Question
Warner Bros. Co. uses a job order costing system. The following information is available from its records. The company has 3 jobs in process: #3,
Warner Bros. Co. uses a job order costing system. The following information is available from its records. The company has 3 jobs in process: #3, #6 and #10.
Raw material used $180 000
Direct labour per hour $8.50
Overhead applied based on direct labour cost 120%
Direct material was requisitioned as follows for each job:
30%, 25% and 25%; the balance of the requisitions was considered indirect. Direct labour hours per job are 3,750; 4,650; and 6,300 respectively. Indirect labour is $49,500. Other actual overhead costs totalled $54,000.
What is the total amount of overhead applied to Job #6?
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