e following information pertains to Sigma Company for September: Direct Material Direct Labor Overhead Job #323 $3,200 $4,500? Job #325? 5,000? Job #401 5,670? $5,550 Sigma Company applies overhead for Job #323 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #325 and #401. The total cost of Jobs #323 and #325 is identical. Refer to Sigma Co. What amount of overhead is applied to Job #323?

Question

Business

Bruce Sharp

3 October, 02:18

e following information pertains to Sigma Company for September: Direct Material Direct Labor Overhead Job #323 $3,200 $4,500? Job #325? 5,000? Job #401 5,670? $5,550 Sigma Company applies overhead for Job #323 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #325 and #401. The total cost of Jobs #323 and #325 is identical. Refer to Sigma Co. What amount of overhead is applied to Job #323?

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Answers (1)

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Cindy · Answer 1

The amount of Overhead applied to

Job # 323 is $ 6300

Explanation:

Direct Material Direct Labor Overhead

Job #323 $3,200 $4,500? (applies overhead for Job #323 at 140 percent of direct labor cost)

Job #325? 5,000? (150 percent of direct labor cost for Jobs #325)

Job #401 5,670? $5,550 (150 percent of direct labor cost for Jobs #401)

We can easily calculate the missing values by using the information given

The amount of Overhead applied to

Job # 323 is 140 % of $ 4500

$ 4500 * 140% = $ 6300

Job # 325 is 150 % of $ 5000

$ 5000 * 150% = $ 7500

The total Cost of

Job # 323 = $3200 + $ 4500 + $ 6300 = $ 14000

Job # 325 = $ 1500 + $ 5000 + $ 7500 = $ 14000

Materials Job # 325 = $ 1500

Job #401

Direct labor = FOH / 150% = $5550/150% = $ 3700