1 answer

Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as...

Question:

Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as the alloca

Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as the allocation base. The company pays its direct laborers $19.50 per hour. During the year, the company started and completed only two jobs—Job Alpha, which used 55,900 direct labor-hours, and Job Omega. The job cost sheets for the these two jobs are shown below: Job Alpha Direct materials Direct labor Manufacturing overhead applied Total job cost $ 2,230,000 Job Omega Direct materials Direct labor Manufacturing overhead applied Total job cost $ 341,400 452,400 290,000 $1,083,800 Required: 1. Calculate the plantwide predetermined overhead rate. 2. Complete the job cost sheet for Job Alpha.

Answers

a) direct labor hour in Job Omega = 452400/19.50 = 23200

Predetermine overhead rate = 290000/23200 = 12.50 per hour

2) Job Cost sheet

Job Alpha
Direct material 441200
Direct labor (55900*19.50) 1090050
Applied overhead 698750
Total 2230000
.

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