Dillman Company Manufactures Custom-Built Conveyor Systems for Factory and Commercial $\text { What is the predetermined overhead rate used by Dilman Company? }$

question 46

Essay

Dillman Company manufactures custom-built conveyor systems for factory and commercial operations.The cost accountant for Dillman Company is in the process of educating a new employee,Jerry Cole about the job-order costing system that Dillman Company uses.(The system is based on normal costs;overhead is applied based on direct labor cost and rounded to the next whole dollar. )The following job-order cost records are available for July:

Job No.	Direct Materials	Direct Labor	Applied OH	Total Cost
667	$ 5,901	$1,730	$ 1,990	$ 9,621
669	18,312	1,810	2,082	22,204
670	406	500	575	1,481
671	51,405	9,500	10,925	71,830
672	9,615	550	633	10,798

To explain the missing job number,the cost accountant informed Jerry that Job #668 had been completed in June.The accountant also told Jerry that Job #667 was the only job in process at the beginning of July.At that time,the job had been assigned $4,300 for direct material and $900 for direct labor.At the end of July,Job #671 had not been completed;all other jobs were complete.The cost accountant asked Jerry several questions to determine whether he understood the job-order costing system.
Required:Help Jerry answer the following questions:
a. $\text { What is the predetermined overhead rate used by Dilman Company? }$
b. $\text { What was the total cost of beginning Work in Processinventory ? }$
c. $\text { What was total prime cost incurred for the month of July? }$
d. $\text { What was cost of goods manufactured for July? }$

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Definitions:

Negative Stimulus

An unfavorable event or situation that elicits a response or reaction, often used in conditioning and behavioral studies.

Piece Rate Pay

A compensation system where employees are paid based on the amount of work completed, not on the amount of time worked.

Hourly Pay

A method of compensation where employees are paid for each hour of work performed, commonly used for part-time or temporary positions.

Safe Working Practices

Guidelines and procedures designed to reduce the risk of accident or injury in the workplace.