NWT Consultants, located in Yellowknife, Northwest Territories, is a small but growing business that analyzes a...

 

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NWT Consultants, located in Yellowknife, Northwest Territories, is a small but growing business that analyzes a variety of construction materials before they are used by contractors. The testing procedures are specific to the individual materials used because reagents used for testing react differently based on their composition and the quantity used. How they are introduced into the materials for testing is also important. During the month of December 2021, NWT completed 36 different jobs. Records pertaining to one such job (reference number: MT Q421-442) are as follows: Date 2/12/21 4/12/21 11/12/21 13/12/21 20/12/21 22/12/21 Document Amount M-3316 $ 840 L-4423 620 L-4437 790 M-3399 M-3407 L-4509 The documents with the references M and L pertain to direct materials and direct labour, respectively. NWT currently allocates overhead using direct labour cost as the allocation base. For the year 2021, it estimated $648,560 as the overhead amount and $484,000 for direct labour costs. 1,570 920 1,260 Required: 1. Compute the overhead allocation rate for 2021. edetermined overhead rate Direct materials Direct labour Overhead 2. Compute the total costs of the job. Amount % NWT Consultants, located in Yellowknife, Northwest Territories, is a small but growing business that analyzes a variety of construction materials before they are used by contractors. The testing procedures are specific to the individual materials used because reagents used for testing react differently based on their composition and the quantity used. How they are introduced into the materials for testing is also important. During the month of December 2021, NWT completed 36 different jobs. Records pertaining to one such job (reference number: MT Q421-442) are as follows: Date 2/12/21 4/12/21 11/12/21 13/12/21 20/12/21 22/12/21 Document Amount M-3316 $ 840 L-4423 620 L-4437 790 M-3399 M-3407 L-4509 The documents with the references M and L pertain to direct materials and direct labour, respectively. NWT currently allocates overhead using direct labour cost as the allocation base. For the year 2021, it estimated $648,560 as the overhead amount and $484,000 for direct labour costs. 1,570 920 1,260 Required: 1. Compute the overhead allocation rate for 2021. edetermined overhead rate Direct materials Direct labour Overhead 2. Compute the total costs of the job. Amount %

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