Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $5,500 for direct materials, $8,300 for direct labor, and $5,893 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $2,600 for direct materials and $5,100 for direct labor. How much overhead cost should be applied to Job W?

Question
Asked Sep 18, 2019

Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $5,500 for direct materials, $8,300 for direct labor, and $5,893 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $2,600 for direct materials and $5,100 for direct labor.

 

How much overhead cost should be applied to Job W?

 

 

 

 

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Overhead costs: The expenses that are not directly related to the manufacturing process are referred to as indirect expenses, or factory overhead costs, or manufacturing overhead costs. Some ex...

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