Question

Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V,...

Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $5,000 for direct materials, $9,700 for direct labor, and $6,596 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $4,400 for direct materials and $4,400 for direct labor.

Required: 1a. Should any overhead cost be applied to Job W at year-end?

Yes or No?

1b. How much overhead cost should be applied to Job W?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1.a.

Overhead is charged on the basis of direct labor cost.

Direct labor cost of Job V = $9,700

Overhead applied to JOb V = $6,596

Overhead rate = Overhead applied to JOb V/Direct labor cost of Job V

= 6,596/9,700

= 68% of direct labor cost

During the current period , Job W was started but it was not completed . Overhead cost should be applied to Job W also.

1.b.

Direct labor cost of Job W = $4,400

Overhead applied to Job W = Direct labor cost of Job W x Overhead rate

= 4,400 x 68%

= $2,992

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Assigning Overhead To A Job Beta Corp. applies overhead to jobs on the basis of direct...
Assigning Overhead To A Job Beta Corp. applies overhead to jobs on the basis of direct labor costs. Job X which was started and completed during the current period shows charges of $10,000 for direct materials, $16,000 for direct labor, and $12,000 for overhead on its job cost sheet. Job Y which still was in process at year end shows charges of $5,000 for direct materials, and $8,000 for direct labor. Required: Should any overhead cost be applied to Job...
Alpha Company applies overhead costs to jobs on the basis of direct labor costs, Job A,...
Alpha Company applies overhead costs to jobs on the basis of direct labor costs, Job A, which was started and completed during the current period, shows charges of $10,000 for direct materials, $16,000 for direct labor, and $12,000 for overhead on its job cost sheet. Job B, which was still in process at year end, shows charges of $5,000 for direct materials and $8,000 for direct labor. Required: 1. (5 pts.) Should any overhead cost be applied to Job B...
Jenkins Company uses a job order cost system with overhead applied to jobs on the basis...
Jenkins Company uses a job order cost system with overhead applied to jobs on the basis of direct labor hours. The direct labor rate is $20 per hour, and the predetermined overhead rate is $15 per direct labor hour. The company worked on three jobs during April. Jobs A and B were in process at the beginning of April. Job A was completed and delivered to the customer. Job B was completed during April, but not sold. Job C was...
Jenkins Company uses a job order cost system with overhead applied to jobs on the basis...
Jenkins Company uses a job order cost system with overhead applied to jobs on the basis of direct labor hours. The direct labor rate is $20 per hour, and the predetermined overhead rate is $15 per direct labor hour. The company worked on three jobs during April. Jobs A and B were in process at the beginning of April. Job A was completed and delivered to the customer. Job B was completed during April, but not sold. Job C was...
Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis...
Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $110,500 of manufacturing overhead for an estimated allocation base of $85,000 direct material dollars to be used in production. The company has provided the following data for the just completed year:         Purchase of raw materials $...
Carlon, Inc. uses a job-order costing system and applies overhead based on direct labor dollars. Job...
Carlon, Inc. uses a job-order costing system and applies overhead based on direct labor dollars. Job 316 was started in July and incurred the following costs in July: Direct materials $950 Direct labor $1,050 Applied overhead $1,260 The job was completed in August with an additional $2,100 in direct material cost and $1,400 in additional direct labor cost. What was the total cost of Job 316 at the end of August?
THE Company applies overhead to jobs using a pre-determined overhead rate of 70% of direct labor...
THE Company applies overhead to jobs using a pre-determined overhead rate of 70% of direct labor cost. During 2021, THE Company began work on three jobs. Information relating to these three jobs appears below: Job #1 Job #2 Job #3 direct materials ...... $39,000 $65,000 $41,000 direct labor cost ..... $54,000 $71,800 $37,300 By the end of 2021, job #1 and job #2 had been completed. Job #3 was not completed by the end of 2021. Additionally, by the end...
The York Co. uses a job order cost system and applies factory overhead to individual jobs...
The York Co. uses a job order cost system and applies factory overhead to individual jobs by using predetermined overhead rates. In department X, overhead is applied on the basis of machine hours, and in department Y, on the basis of direct labor hours. At the beginning of the current year, management made the following budget estimates: Dept X Dept Y Direct Labor $210,000 $384,000 Factory Overhead $216,000 $105,000 Machine Hours 36,000 900 Direct Labor Hours 18,000 25,000 Production order...
The York Co. uses a job order cost system and applies factory overhead to individual jobs...
The York Co. uses a job order cost system and applies factory overhead to individual jobs by using predetermined overhead rates. In department X, overhead is applied on the basis of machine hours, and in department Y, on the basis of direct labor hours. At the beginning of the current year, management made the following budget estimates: Dept X Dept Y Direct Labor $210,000 $384,000 Factory Overhead $216,000 $105,000 Machine Hours 36,000 900 Direct Labor Hours 18,000 25,000 Production order...
Lott Company uses a job order cost system and applies overhead to production on the basis...
Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor $12,000, and manufacturing overhead $16,000. As of January 1, Job 49 had been completed at a cost of $90,000 and was part of finished goods inventory. There was a $15,000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT