Question:
Job-Order Costing Variables
On July 1, Job 46 had a beginning balance of $740. During July, prime costs added to the job totaled $620. Of that amount, direct materials were three times as much as direct labor. The ending balance of the job was $1,600.
Required:
1. What was overhead applied to the job during July?
$ 240
2. What was direct materials for Job 46 for July? Direct labor? If rounding is required, round your answers to the nearest cent.
|
Direct labor
|
$ 155
|
|
Direct materials
|
$ 465
|
3. Assuming that overhead is applied on the basis of direct labor cost, what is the overhead rate for the company? Round your answer to the nearest whole percent.
%
I cannot seem to get number 3.
Here are some hints:
1. Find overhead applied by adding beginning balance to prime costs and subtracting from ending balance.
2. Set up equation for prime cost using direct materials and direct labor. Let direct materials equal 3 times direct labor.
3. Divide overhead by the direct labor for the rate.