Booth Manufacturing uses a job order costing system that charges overhead to jobs on the basis of direct material cost.At year-end,the Work in Process Inventory account shows the following.
a.Determine the predetermined overhead rate used.
b.Only one job remained in process at December 31.Its direct materials cost is $60,000.How much direct labor cost and overhead cost are assigned to it?

Question

Booth Manufacturing uses a job order costing system that charges overhead to jobs on the basis of direct material cost.At year-end,the Work in Process Inventory account shows the following.
  a.Determine the predetermined overhead rate used.
b.Only one job remained in process at December 31.Its direct materials cost is $60,000.How much direct labor cost and overhead cost are assigned to it?

Quizplus · Accepted Answer

The Answer of Booth Manufacturing uses a job order costing system that charges overhead to jobs on the basis of direct material cost.At year-end,the Work in Process Inventory account shows the following.
  a.Determine the predetermined overhead rate used.
b.Only one job remained in process at December 31.Its direct materials cost is $60,000.How much direct labor cost and overhead cost are assigned to it?

Booth Manufacturing Uses a Job Order Costing System That Charges