Question

Laurelton Heating & Cooling installs and services commercial heating and cooling systems. Laurelton uses job costing to calculate the cost of as jobs Overhead is allocated to each job based on the number of direct labor hours spent on that job. At the beginning of the current year, Laurelton estimated that its overhead for the coming year would be $64 800. It also anticipated using 4,050 direct labor hours for the year In October, Laurelton started and completed the following two jobs (Click the icon to view the jobs) Laurelton paid a $30 per hour wage rate to the employees who worked on these two jobs Read the requirements Requirement 1. What is Laurelton's predetermined overhead rate based on direct labor hours? Determine the formula to calculate Laurelton's predetermined overhead rate based on direct labor hours, then calculate the rate - Predetermined overhead rate S per hour Requirement 2. Calculate the overhead to be allocated to each of the two jobs based on direct labor hours, Job 101 Job 102 Overhead costs Requirement 3. What is the total cost of Job 101? What is the total cost of Job 1022 Job 101 Job 102 * Data Table Total job cost Job 101 Job 102 Direct materials used -..5 16,000 5 11.000 Direct labor hours used 175 74 Print Done

Answer 1

Req 1 Predetermined Rate Estimated Overhead 64800 Estimated Direct Labor Hour 4050 = predetermined Overhead rate 16.00 Per hour Divide Estimated Overhead with Estimated DLH to calculate predetermined rate. Req 2 Allocate overhead Job 102 Job 101 175 16 Direct Labor Hour Multiply Predetermined Rate Overhead Cost 74 16 2800 1184 Req 3 Total Cost Add Add Direct Material Direct Labor Overhead Cost Total Job Cost 16,000 5,250 2,800 24,050 $ $ $ $ 11,000 2,220 1,184 14,404 Working Direct Labor = DL hour x DL Rate 175 x 30 74 x 30 Multiply predetemined rate with DLH to calculate Overhead Cost.