Answer and Explanation:
1. The computation of the number of direct labor hours for each job is as follows
Number of direct labor hours = Direct labor per cost ÷ direct labor wage rate per hour
For Job 93
= $2,160 ÷ $18 per hour
= 120 hours
For job 94
= $5,400 ÷ $18 per hour
= 300 hours
For job 95
= $2,610 ÷ $18 per hour
= 145 hours
For job 96
= $900 ÷ $18 per hour
= 50 hours
2. The overhead applied for each job is
Overhead applied is
= Number of direct labor hours × overhead rate
For Job 93
= 120 hours × $8
= $960
For job 94
= 300 hours × $8
= $2,400
For job 95
= 145 hours × $8
= $1,160
For job 96
= 50 hours × $8
= $400
3. The preparation of the job order cost sheet is presented below:
Particulars Job 93 Job 94 Job 95 Job 96
Beginning
balance $8,750 $7,300
Direct
materials $950 $4,500 $3,300 $1,300
Direct
labor $2,160 $5,400 $2,610 $900
Applied
overhead $960 $2,400 $1,160 $400
Total $12,820 $19,600 $7,070 $2,600
4. The balance in work in process as on August 31 is
= Total job cost - cost of completed jobs
= ($12,820 + $19,600 + $7,070 + $2,600) - $12,820
= ($42,090 - $12,820)
= $29,270
5. Now the price of Job 93 is
= Job cost of 93 + Job cost of 93 × given percentage
= $12,820 + $12,820 × 40%
= $12,820 + $5,128
= $17,948
