Question

Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours were 124,000 and estimated factory overhead was $880,400. The following information was for September. Job X was completed during September, while Job Y was started but not finished.

	September 1, inventories:
	Materials	$	10,100
	Work-in-process (All Job X)		38,400
	Finished goods		81,400
	Materials purchases	$	135,000
	Direct materials requisitioned:
	Job X	$	55,500
	Job Y		41,000
	Direct labor hours:
	Job X		6,000
	Job Y		5,500
	Labor costs incurred:
	Direct labor ($7.00 per hour)	$	80,500
	Indirect labor		17,200
	Factory supervisory salaries		8,200
	Rental costs:
	Factory	$	9,400
	Administrative offices		3,200
	Total equipment depreciation costs:
	Factory	$	10,100
	Administrative offices		2,900
	Indirect materials used	$	15,400

The total cost of Job X is:

Answer 1

Calculate total Cost of Job X

Beginning work in process	38400
Direct material	55500
Direct labor (6000*7)	42000
Overhead	42600
Total cost of Job X	178500

Overhead rate = 880400/124000 = 7.10 per labor hour