# Question: Rector Company designs and builds retaining walls for individual customers

Rector Company designs and builds retaining walls for individual customers. On August 1, there were two jobs in process: Job 547 with a beginning balance of \$9,300, and Job 548 with a beginning balance of \$7,800. Rector applies overhead at the rate of \$9 per direct labor hour. Direct labor wages average \$15 per hour.
Data on August costs for all jobs are as follows:
During August, Jobs 549 and 550 were started. Job 547 was completed on August 17, and the client was billed at cost plus 30 percent. All other jobs remained in process.

Required:
1. Calculate the number of direct labor hours that were worked on each job in August.
2. Calculate the overhead applied to each job during the month of August.
3. Prepare job-order cost sheets for each job as of the end of August.
4. Calculate the balance in Work in Process on August 31.
5. What is the price of Job 547?
6. Partway through the year, Rector bought a bulldozer to handle larger jobs. The bulldozer cost \$38,000 and is needed for larger commercial jobs. Smaller residential jobs can still be done with the smaller bobcat tractor. How could Rector apply the bulldozer cost to only those jobs that need the larger equipment?

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