Answer:
Instructions are listed below
Explanation:
Giving the following information:
Overhead is allocated to each job based on the number of direct labor hours spent on that job.
At the beginning of the current year:
The estimated overhead= $66,750.
Estimated direct labor hours= 4,450
In November, Leisure started and completed the following two jobs:
Job 101
Direct materials used= $16,000
Direct labor hours used=195
Job 102
Direct materials used= $ 10,500
Direct labor hours used= 72
Leisure paid a $30 per hour wage rate.
A) predetermined overhead rate= total estimated manufacturing overhead/ total amount of allocation base
predetermined overhead rate= 66,750/4450= $15 hour
B) Job 101:
Manufacturing overhead allocated= direct labor hours*predetermined overhead rate
Manufacturing overhead allocated= 195*15= $2925
Job 102:
Manufacturing overhead allocated= 72*15= $1080
C) Job 101:
Total cost= direct materials + direct labor + manufacturing overhead
Total cost= 16000 + 195*30 + 2925= $24,775
Job 102:
Total cost= 10500 + 72*30 + 1080= $13740
