Problem
Warner Bros. Co. uses a job order costing system. The following information is available from its records. The company has 3 jobs in process: #3, #6 and #10.
a) Raw material used $180 000
b) Direct labour per hour $8.50
c) Overhead applied based on direct labour cost 120%
Direct material was requisitioned as follows for each job:
30%, 25% and 25%; the balance of the requisitions was considered indirect. Direct labour hours per job are 3,750; 4,650; and 6,300 respectively. Indirect labour is $49,500. Other actual overhead costs totaled $54,000. Calculate the total amount of overhead applied to Job #6?