Dynamic Widgets, Inc. has received three different orders $($Job $101,$ Job $102,$ and Job $103)$ during the month of January. Each job is unique in terms of materials and labor required. The company needs to calculate the cost of each job accurately to determine pricing and measure profitability. Company Costs:$-$ Direct Materials: Purchased on a per$-$job basis.$-$ Direct Labor: Workers are paid $$20/$hour$.-$ Manufacturing Overhead $($MOH$)$: Applied based on direct labor hours. The predetermined overhead rate is based on an estimated annual overhead cost of $$600,000$ and $30,000$ direct labor hours.Job DetailsJobDirect MaterialsDirect LaborJob $101$$$5,000150$ hoursJob $102$$$7,500200$ hoursJob $103$$$4,000100$ hours Class Activity Tasks:$1.$ Calculate the Cost of Each Job: Use the job cost sheet to assign direct materials, direct labor, and manufacturing overhead to each job. Determine the total cost of each job$\mathrm{.}2.$ Determine the Predetermined Overhead Rate: Calculate the predetermined overhead rate using the given estimated costs and labor hours. Apply this rate to compute the manufacturing overhead for each job$\mathrm{.}3.$ Prepare Journal Entries: For each job, prepare the necessary journal entries to record the completion of the jobs and their sale. Assume each job is sold for $150\%$ of its cost$\mathrm{.}4.$ Analyze Overhead Application: At the end of January, actual manufacturing overhead was $$50,000.$ Determine if there is under$-$ or overapplied overhead and by how much.

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1 Calculate the Cost of Each Job Job 101 Direct Materials 5000 Direct Labor 150 hours 20hour 3000 Ma... View the full answer