Spock Ltd uses a job costing system. On 1 October 20X1, work in process account had...

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Spock Ltd uses a job costing system. On 1 October 20X1, work in process account had a balance of $8 600, made up as follows: Job No. 501 502 Direct materials $2 480 $2 920 Job No. 501 502 503 Direct Labour Overhead costs $1.060 $580 $960 $600 During October direct materials and direct labour costs, and direct labour hours were: Direct materials Direct Labour $2 240 $3 600 $1 920 $400 $800 $6 000 Total $4 500 $4 100 Required: (a) Determine the company's predetermined overhead rate. (b) Prepare the job cost sheet for the company. Direct labour hours 800 900 600 4 Overhead is allocated to jobs on a direct labour hour basis. The company is expected to operate at a volume of 40 000 direct labour hours and overhead costs is expected to be $120 000 annually. During the month Job 501, 502 were completed and transferred to finished goods. Spock Ltd uses a job costing system. On 1 October 20X1, work in process account had a balance of $8 600, made up as follows: Job No. 501 502 Direct materials $2 480 $2 920 Job No. 501 502 503 Direct Labour Overhead costs $1.060 $580 $960 $600 During October direct materials and direct labour costs, and direct labour hours were: Direct materials Direct Labour $2 240 $3 600 $1 920 $400 $800 $6 000 Total $4 500 $4 100 Required: (a) Determine the company's predetermined overhead rate. (b) Prepare the job cost sheet for the company. Direct labour hours 800 900 600 4 Overhead is allocated to jobs on a direct labour hour basis. The company is expected to operate at a volume of 40 000 direct labour hours and overhead costs is expected to be $120 000 annually. During the month Job 501, 502 were completed and transferred to finished goods.

Answer rating: 100% (QA)

a Pred etermined Over head Rate Total Over head Costs Total Direct Labour Hours S 120 000 40 000 S 3 00 per Direct Labour Hour ... View the full answer