The following information is available at the end of May: $\begin{array}{lr}
\text { Balance in work in process on May 1 } & \$ 141,800 \
\text { Direct materials costs for May } & 174,500 \
\text { Direct labor costs for May } & 162,500\
\text { Overhead applied at rate of } 140 \% \text { of direct labor dollars }
\end{array}$

$\text { Jobs completed during May: }$

$\begin{array}{lr}
\text { Job 84 } & \$ 198,780 \
\text { Job 85 } & 102,520 \
\text { Job 86 } & 119,450 \
\text { Job 87 } & 93,150
\end{array}$

$\text { Job } 88 \text { was not complete at the end of May }$

If $72,400 of materials were charged to Job 88's job cost card,how much overhead was applied to Job 88?

Question

The following information is available at the end of May: $\begin{array}{lr}
\text { Balance in work in process on May 1 } & \$ 141,800 \
\text { Direct materials costs for May } & 174,500 \
\text { Direct labor costs for May } & 162,500\
\text { Overhead applied at rate of } 140 \% \text { of direct labor dollars } 
\end{array}$

$\text { Jobs completed during May: }$

$\begin{array}{lr}
\text { Job 84 } & \$ 198,780 \
\text { Job 85 } & 102,520 \
\text { Job 86 } & 119,450 \
\text { Job 87 } & 93,150
\end{array}$

$\text { Job } 88 \text { was not complete at the end of May }$
 
If $72,400 of materials were charged to Job 88's job cost card,how much overhead was applied to Job 88?

Quizplus · Accepted Answer

The overhead is applied at 140% of direct labor costs. To find the overhead applied to Job 88, we need to determine the direct labor cost for Job 88. The total direct labor cost for May is $162,500, and the total overhead applied is 140% of this, which is $227,500. Since Job 88 is not complete, we need to find the remaining overhead after accounting for completed jobs. The total cost of completed jobs is $513,900. Subtracting this from the total costs (including beginning WIP, materials, labor, and overhead) gives the cost for Job 88, from which we can deduce the overhead applied.

The Following Information Is Available at the End of May