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View Full Version : Manufacturing overhead is applied on the basis of direct labor cost, what overhead ra


pulliav
Oct 22, 2011, 08:09 AM
A job order cost sheet for Aikman Company is shown below.
Job No. 92 For 2,000 units
Date Direct materials Direct labor Manufacturing Overhead
Beg. Bal. Jan. 1 5,000 6,000 4,500
8 6,000
12 8,000 6,400
25 2,000
27
4,000 3,200

13,000 18,000 14,100

Cost of completed job
Direct materials $13,000
Direct labor 18,000
Manufacturing overhead 14,100

Total cost $45,100

Unit cost ($45,100 รท 2,000) $22.55








On the basis of the foregoing data answer the following questions.
What was the balance in Work in Process Inventory on January 1 if this was the only unfinished job?
$


If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year?

Last Year %
This Year %