Sigma Company applies overhead cost to jobs on the basis of direct labor cost. Job A, which
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Sigma Company applies overhead cost to jobs on the basis of direct labor cost. Job A, which was started and completed during the current period, shows charges of $5,000 for direct materials, $8,000 for direct labor, and $6,000 for overhead on its job cost sheet. Job B, which is still in process at year-end, shows charges of $2,500 for direct materials and $4,000 for direct labor. Should any overhead cost be added to Job B at year-end? Explain.
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Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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