Question Help Pentucket Computer Company uses a job order costing system in whic

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Question Help Pentucket Computer Company uses a job order costing system in which each batch manufactured is a different job. Pentucket Computer Company assigns direct materials and direct labor to each job. The company assigns labor costs at $30 per hour. It allocates manufacturing overhead to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. At the beginning of 2020, the controller prepared the following budget EE (Click the icon to view the budget) In November 2020, Pentucket Computer Company worked on several jobs. Records for two jobs appear here: P (Click the icon to view the records for the two jobs.) Read the requirements Requirement 1. Compute Pentucket Computer Company's predetermined overhead (OH) allocation rate for 2020 so - Predetermined OH allocation rate ami Requirement 2. Compute the total cost of each job. ules Job 721 Job 722 Total cost Requirement 3. Why does Pentucket assign costs to jobs? Pentucket Computer Company assigns costs to jobs to help the company Choose from any list or enter any number in the input fields and then continue to the next question. that cover all costs and contribute to profit. Assigning costs to

Explanation / Answer

Answer 1 Manufacturing Overheads / Direct Labour cost = Predetermined Overhead rate $252000 / $900000 = 28% of Direct Labour cost Answer 2 Total cost of each job Job 721 Job 722 Direct Materials $20,200.00 $2,900.00 Direct Labour ($30 per hour) $24,900.00 $2,100.00 Manufacturing Overheads $6,972.00 $588.00 Total Cost   $52,072.00 $5,588.00 Answer 3 Pentucket Computer company assigns cost to jobs to help the company to generate revenue that cover all costs and contribute to profit.

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