Giant Company is a job-order costing company that produces customized bicycles.During the month of October,Giant had three jobs in-process,Job 50cm,Job 56cm,and Job 60 cm.By the end of the month,all three jobs had been completed,with Job 60cm being sold for $484.50.The following costs belong to each job:
$\begin{array}{lrrr}&\text { Job } 50 \mathrm{~cm} & \underline{\text { Job } 56 \mathrm{~cm}} &\text { Job } 60 \mathrm{~cm}\
\text { Direct Materials } & \$ 90 & \$ 85 & \$ 95 \
\text { Direct Labour } & 100 & 110 & 95 \
\text { Applied Overhead } & 140 & 154 & 133 \
\text { Total } & \$ 330 & \$ 349 & \$ 323
\end{array}$ A. Overhead is applied based on direct labour dollars. What is the overhead rate?
B. What rate does Giant use to price its jobs?
C. What is the gross margin on Job $60 \mathrm {~cm}$ ?

Question

Giant Company is a job-order costing company that produces customized bicycles.During the month of October,Giant had three jobs in-process,Job 50cm,Job 56cm,and Job 60 cm.By the end of the month,all three jobs had been completed,with Job 60cm being sold for $484.50.The following costs belong to each job:
 $\begin{array}{lrrr}&\text { Job } 50 \mathrm{~cm} & \underline{\text { Job } 56 \mathrm{~cm}} &\text { Job } 60 \mathrm{~cm}\
\text { Direct Materials } & \$ 90 & \$ 85 & \$ 95 \
\text { Direct Labour } & 100 & 110 & 95 \
\text { Applied Overhead } & 140 & 154 & 133 \
\text { Total } & \$ 330 & \$ 349 & \$ 323
\end{array}$ A. Overhead is applied based on direct labour dollars. What is the overhead rate?
B. What rate does Giant use to price its jobs?
C. What is the gross margin on Job $60 \mathrm {~cm}$ ?

Quizplus · Accepted Answer

The Answer of Giant Company is a job-order costing company that produces customized bicycles.During the month of October,Giant had three jobs in-process,Job 50cm,Job 56cm,and Job 60 cm.By the end of the month,all three jobs had been completed,with Job 60cm being sold for $484.50.The following costs belong to each job:
 $\begin{array}{lrrr}&\text { Job } 50 \mathrm{~cm} & \underline{\text { Job } 56 \mathrm{~cm}} &\text { Job } 60 \mathrm{~cm}\
\text { Direct Materials } & \$ 90 & \$ 85 & \$ 95 \
\text { Direct Labour } & 100 & 110 & 95 \
\text { Applied Overhead } & 140 & 154 & 133 \
\text { Total } & \$ 330 & \$ 349 & \$ 323
\end{array}$ A. Overhead is applied based on direct labour dollars. What is the overhead rate?
B. What rate does Giant use to price its jobs?
C. What is the gross margin on Job $60 \mathrm {~cm}$ ?

Giant Company Is a Job-Order Costing Company That Produces Customized