I need help with this excersice. Can you please help? Usse Company uses a job-or
ID: 2433707 • Letter: I
Question
I need help with this excersice. Can you please help? Usse Company uses a job-order costing system. The companyapplies manufacturing overhead to jobs using a predeterminedoverhead rate based on direct labor-hours. Last year,manufacturing overhead and direct labor-hours were estimated at$80,000 and 16,000 hours respectively, for the year. In June , Job#15 was completed. Materials costs on the job totaled $1500and labor costs totaled $2400 at $6 per hour. At the end of the year, it was determined thatthe company worked 15,000 direct labor-hours for the year, andincurred $78,000 in actual manufacturing overhead costs. Required: a. Determine the predermined overhead rate for theyear. b. Determine the amount of overhead charged to jobsduring the year. c. Determine the amount of underapplied or overappliedoverhead for the year. d. Assuming that 100 units were completed, determine theunit cost that would appear on the job cost sheet for job#15. Thank you if you can do this! I need help with this excersice. Can you please help? Usse Company uses a job-order costing system. The companyapplies manufacturing overhead to jobs using a predeterminedoverhead rate based on direct labor-hours. Last year,manufacturing overhead and direct labor-hours were estimated at$80,000 and 16,000 hours respectively, for the year. In June , Job#15 was completed. Materials costs on the job totaled $1500and labor costs totaled $2400 at $6 per hour. At the end of the year, it was determined thatthe company worked 15,000 direct labor-hours for the year, andincurred $78,000 in actual manufacturing overhead costs. Required: a. Determine the predermined overhead rate for theyear. b. Determine the amount of overhead charged to jobsduring the year. c. Determine the amount of underapplied or overappliedoverhead for the year. d. Assuming that 100 units were completed, determine theunit cost that would appear on the job cost sheet for job#15. Thank you if you can do this!Explanation / Answer
a. Determine the predermined overhead rate for theyear. ==================================== POHR = Manufacturingoverhead / Direct laborhours = $80,000/ 16,000hours = $5.00per DLHb. Determine the amount of overhead charged to jobs during theyear. ============================================= Overheadapplied = POHR x direct laborhours = $5.00 x15,000 DLH = $75,000 c. Determine the amount of underapplied or overapplied overhead forthe year. =================================================== Overhead applied =POHR x direct labor hours = $5.00x15,000 DLH $75,000 Overheadincurred $78,000 Overheadunderapplied $3,000 d. Assuming that 100 units were completed, determine the unit costthat would appear on the job cost sheetfor job#15. ============================================================================== Job # 15 ======= Materials $1,500 Labor $2,400 Manufacturingoverhead applied ($2,400 / $6.00) = 400 hours @$5.00 perDLH $2,000 Totalcost for 100units $5,900 Unitcost of Job #15 $5,900/100 $5.90