Exercise - Applying Overhead to a Job
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 $6,700 for direct materials, $9,500 for direct labor, and $6,365 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $3,500 for direct materials and $5,800 for direct labor.
Required: Calculate overhead cost to be added to Job W at year-end.