Question

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

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 $13.00 per hour. During the year, the company started and completed only two jobs—Job Alpha, which used 64,200 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 $ 1,620,000
Job Omega
Direct materials $ 225,000
Direct labor 357,500
Manufacturing overhead applied 165,000
Total job cost $ 747,500

Required:

1. Calculate the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.)

Plantwide predetermined overhead rate per DLH

2. Complete the job cost sheet for Job Alpha. (Round your intermediate calculations to 2 decimal places.)

Direct materials
Direct labor
Manufacturing overhead applied
Total job cost

Homework Answers

Answer #1

1. Plantwide predetermined overhead rate = $6 per hour.

Working : Job Omega

Direct labor = $357,500

Direct labor rate =$13 per hour

Direct labor hourd = $357500/13 = 27,500 hours

Manufacturing overhead applied =$165,000

Overhead rate = $165,000/27500 hours = $ 6 per hour

2.

Job Alpha
Direct materials 400,200
Direct labor 834,600
Manufacturing overhead applied 385,200
Total job cost $ 1,620,000

Working :

Direct labor = 64,200 *$13 = $834,600

Manufacturing overhead = 64,200 *$6 = $385,200

Direct material = $1620000-834600-385200 =$400200

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