Question

JZ Church Furniture manufactures custom pews, altars, and pulpits for churches across the southern United States. Since each order is unique, JZ uses a job order costing system. During the month of June, JZ worked on orders for three churches: Faith Church, Grace Church, and Hope Church. Production on the Faith and Grace orders began in May and ended in June. Production on the Hope order began in June and was incomplete at the end of the month. JZ applies overhead to each job based on machine hours. Prior to the year, managers had estimated manufacturing overhead at $800,000, along with 40,000 machine hours. Additional cost information related to the three orders is as follows:


Required

a. What is JZ's predetermined overhead rate?
b. How much manufacturing overhead should JZ apply to each job for June?
c. What is the balance in JZ's Work in Process Inventory account at the end ofJune?


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  • CreatedFebruary 21, 2014
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