Robertson Company.
Robertson Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #8,#12,and #15.
Raw matenial used $130,000
Direct lab or per hour $\$ 9.50$
Overhead applied bared on direct lab or cost $125 \%$
Direct material was requisitioned as follows for each job respectively: 25 percent,30 percent,and 30 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,800;3,300;and 4,000;respectively.Indirect labor is $45,000.Other actual overhead costs totaled $50,000.
Refer to Robertson Company.How much overhead is applied to Work in Process?

Question

Robertson Company.
Robertson Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #8,#12,and #15.
Raw matenial used                                                            $130,000
Direct lab or per hour                                                        $\$ 9.50$
Overhead applied bared on direct lab or cost                     $125 \%$ 
Direct material was requisitioned as follows for each job respectively: 25 percent,30 percent,and 30 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,800;3,300;and 4,000;respectively.Indirect labor is $45,000.Other actual overhead costs totaled $50,000.
Refer to Robertson Company.How much overhead is applied to Work in Process?

Quizplus · Accepted Answer

To calculate the overhead applied to Work in Process, we need to first calculate the total direct labor cost for each job:

Job 8: 2,800 hours x $9.50 per hour = $26,600 direct labor cost
Job 12: 3,300 hours x $9.50 per hour = $31,350 direct labor cost
Job 15: 4,000 hours x $9.50 per hour = $38,000 direct labor cost

Next, we can calculate the total overhead applied to each job by multiplying the direct labor cost by the overhead rate:

Job 8: $26,600 x 1.25 = $33,250 overhead applied
Job 12: $31,350 x 1.25 = $39,188 overhead applied
Job 15: $38,000 x 1.25 = $47,500 overhead applied

The total overhead applied to Work in Process is the sum of the overhead applied to each job:

$33,250 + $39,188 + $47,500 = $119,938

Therefore, the best choice is B.

Robertson Company $9.50\$ 9.50$9.50 Overhead Applied Bared on Direct Lab or Cost &Nbsp; &Nbsp;

Robertson Company $\$ 9.50$ Overhead Applied Bared on Direct Lab or Cost &Nbsp; &Nbsp;