Everbuilt Company had no jobs in progress at the beginning of June and no beginn
ID: 2335120 • Letter: E
Question
Everbuilt Company had no jobs in progress at the beginning of June and no beginning inventories. It started only two jobs during June—Job L and Job W. Job L was completed and sold by the end of June and Job W was incomplete at the end of June. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs L and W (all data and questions relate to the month of June):
Estimated total fixed manufacturing overhead. . . . . . . . . . . . . . . . . . . . . . . . . . $30,000
Estimated variable manufacturing overhead per
direct labor-hour. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3.00
Estimated total direct labor hours to be worked. . . . . . . . . . . . . . . . . . . . . . . . . 6,000
Total actual manufacturing overhead costs incurred. . . . . . . . . . . . . . . . . . . . . $37,500
Job L Job W
Direct materials. . . . . . . . . . . . . . . . . . . . . . $39,000 $24,000
Direct labor cost. . . . . . . . . . . . . . . . . . . . . . $62,000 $22,500
Actual direct labor hours worked. . . . . . . . 4,200 1,500
What is the total amount of manufacturing cost assigned to Job W as of the end of June (including applied overhead)?
please give step by step instructions
Explanation / Answer
1)Estimated overhead rate =Estimated overhead/ estimated DLH
Fixed overhead rate : 30000 /6000
= $ 5 per DLH
Predetermined overhead rate = fixed overhead rate+ variable overhead rate
= 5+ 3
= $ 8 per DLH
Job W Direct material 24000 Direct labor 22500 overhead applied [1500*8] 12000 Total manufacturing cost 58500Related Questions
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