# Mystic Inc. uses a job order costing system and applies overhead to jobs at a predetermined rate of \$4.25 per

## Question:

Mystic Inc. uses a job order costing system and applies overhead to jobs at a predetermined rate of \$4.25 per direct labor dollar. During April 2010, the company spent \$29,600 on direct material and \$3,900 on direct labor for Job #344. Budgeted factory overhead for the company for the year was \$1,275,000.

a. How did Mystic Inc. compute the predetermined overhead rate for 2010?

b. Journalize the application of overhead to all jobs, assuming that April’s total direct labor cost was \$22,700.

c. How much overhead was assigned to Job #344 during April?

d. Job #344 had a balance of \$18,350 on April 1. What was the April 30 balance?

## This problem has been solved!

Related Book For

## Cost Accounting Foundations and Evolutions

ISBN: 978-1111626822

8th Edition

Authors: Michael R. Kinney, Cecily A. Raiborn

Question Details
Chapter # 5
Section: Questions
Problem: 21
View Solution