Juanita Corporation uses a job-order costing system and applies overhead on the basis of direct labor cost.At the end of October,Juanita had one job still in process.The job cost sheet for this job contained the following information: An additional $100 of labor was needed in November to complete this job.For this job,how much cost should Juanita have transferred to finished goods inventory in November when it was completed?

Question

Juanita Corporation uses a job-order costing system and applies overhead on the basis of direct labor cost.At the end of October,Juanita had one job still in process.The job cost sheet for this job contained the following information:  An additional $100 of labor was needed in November to complete this job.For this job,how much cost should Juanita have transferred to finished goods inventory in November when it was completed?

Quizplus · Accepted Answer

Predetermined overhead rate = $600 F1F1F1S1F1F1F10 $150 = 400%
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Juanita Corporation Uses a Job-Order Costing System and Applies Overhead