Biotechnologies Unlimited, Inc. (BUI) located in Sydney, Nova Scotia, is a small but growing biotech quality analysis organization that tests pesticides before they are used by farmers. The testing procedures are specific to the individual pesticides used because reagents used for testing react differently based on their composition and the quantity used. How they are introduced into the pesticides for testing is also important. During the month of December 2016, it completed one job (reference number: KS 2016-337): records pertaining to this job are as follows: Date Document Amount 02-12-2016 M-3316 890 04-12-2016 L-4423 230 11-12-2016 L-4437 530 13-12-2016 M-3399 1,750 20-12-2016 M-3407 200 22-12-2016 L-4509 700 The documents with references M and L pertain to direct materials and direct labour, respectively. BUI currently allocates overhead using direct labour cost as the allocation base. For the year 2016, it estimated $590,000 as the overhead amount and $472,000 for the direct labour costs.

Required:

a) Compute the overhead allocation rate for 2016.

b) Compute the total cost of the job (show direct materials, direct labour, and overhead as separate line items).

c) Prepare a job cost sheet for job KS 2016-337.

Answer rating: 100% (QA)

1 Overhead allocation rate for 2016 Estimated overh... View the full answer