What would be the total cost of JOB 101
4. Peter Co. Makes shirts that it sells to retailers. The company uses a job order costing system in which predetermined overhead rates are used to apply
Sewing Cutting
Direct labor hours 24,000 120,000
Machine hours 140,000 10,000
Direct material cost 1,020,000 1,300,000
Direct labor cost 260,000 840,000
FOH Cost 1,204,000 1,470,000
Job 101 was started on February 1 and completed on February 25. The company’s cost records show the following information concerning the job.
Sewing Cutting
Direct labor hours 60 170
Machine hours 220 40
Material used 940 664
Direct labor cost 580 1,360
At the end of the year, the records of the company show the actual cost and data for all jobs worked during the year:
Sewing Cutting
Direct labor hours 20,000 124,000
Machine hours 130,000 18,000
Direct Material cost 860,000 1,360,000
Direct labor cost 216,000 872,000
FOH cost 1,140,000 1,500,000
1. Compute the factory overhead rate using the cutting department during the year
2. Compute the total factory overhead cost applied to JOB 101
3. What would be the total
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