Response to the following problem:
The Huyden Company builds equipment to customer's specifications. On March 1, two jobs were in process with the following costs and information:
Job 43 Job 44
Direct materials $10,200 $34,400
Direct labor 21,000 10,400
Applied overhead* 4,950 7,370
Total cost $36,150 $52,170
Machine hours 45 67
*Applied on the basis of machine hours During March, Job 45 was started and Job 44 was completed and delivered to the customer. Job 43 was missing a part that was backordered and would be completed in June. The following costs were incurred in March:
Job 43 Job 44 Job 45
Direct materials $2,300 $4,500 $12,700
Direct labor $2,400 $3,300 $4,500
Machine hours 21 11 23
It is Huyden's policy to bill clients at cost plus 40 percent.
Required:
a. Calculate the overhead rate that Huyden is using.
b. Calculate the overhead applied to each job during the month of March.
c. Calculate the balance in work in process on March 31.
d. What was the price of Job 44?