Exercise $2-10($Algo$)$ Applying Overhead Cost to a Job $[$LO$2-2]$

Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V$,$ which was started and completed

during the current period, shows charges of $$6,900$ for direct materials, $$9,200$ for direct labor, and $$5,980$ for overhead on

its job cost sheet. Job W$,$ which is still in process at year$-$end, shows charges of $$2,600$ for direct materials and $$4,300$ for

direct labor.

Required:

$1$a$.$ Should any overhead cost be applied to Job W at year$-$end?

$1$b$.$ How much overhead cost should be applied to Job W$?$

How will the costs included in Job W$\text{'}$s job cost sheet be reported within Sigma Corporation's financial statements at the

end of the year?

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How much overhead cost should be applied to Job W$?$