Mansfield Heating & Cooling installs and services commercial heating and cooling systems. Mansfield uses job costing to
Question:
Job 101 Job 102
Direct materials used ...................................................$17,000................$13,000
Direct labor hours used .......................................................170......................72
Mansfield paid a $22 per hour wage rate to the employees who worked on these two jobs.
Requirements
1. What is Mansfield's predetermined overhead rate based on direct labor hours?
2. Calculate the overhead to be allocated based on direct labor hours to each of the two jobs.
3. What is the total cost of Job 101? What is the total cost of Job 102?
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