How much of Melissa's material (after making the correction) is attributable to direct material and how much to overhead?  How is the direct material cost assigned to individual jobs, and how is the overhead cost allocated?

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 4.7C
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Melissa Petersen is a quality control specialist employed by Fenway Racing.  Fenway Racing manufactures custom race cars to exact specifications of drivers.  Melissa's job is to perform final testing of each car's engine and make final performance related adjustments.  Some adjustments involve simple recalibration and consume only indirect materials like lubricants, tape, washers, and screws.  Occasionally, a major adjustment is needed, and requires an expensive direct material component.  Below is Melissa's materials requisition form for March 7, 20X6:

b.) How much of Melissa's material (after making the correction) is attributable to direct material and how much to overhead?  How is the direct material cost assigned to individual jobs, and how is the overhead cost allocated? 

Employee:
Melissa Petersen
Materials Requisition
Date:
03/07/X6
Material
Job Number
Quantity
Per Unit Cost
Extended Cost
Lubricant
indirect material
1 can
$6 each
2$
6.00
Valve cover
#11245
2 units
$140 each
$
140.00
Таре
indirect material
1 roll
$3 per roll
3.00
Circuit board
indirect material
1 unit
$940 each
940.00
Tie rod
#11305
4 units
$156 each
$
624.00
Washers
indirect material
10 units
$0.10 each
$
1.00
Transcribed Image Text:Employee: Melissa Petersen Materials Requisition Date: 03/07/X6 Material Job Number Quantity Per Unit Cost Extended Cost Lubricant indirect material 1 can $6 each 2$ 6.00 Valve cover #11245 2 units $140 each $ 140.00 Таре indirect material 1 roll $3 per roll 3.00 Circuit board indirect material 1 unit $940 each 940.00 Tie rod #11305 4 units $156 each $ 624.00 Washers indirect material 10 units $0.10 each $ 1.00
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