A Company Uses a Job Order Costing System and Applies

question 109

Essay

A company uses a job order costing system and applies overhead on the basis of direct labor cost.A summary of the company's Work in Process Inventory account for December appears below.
Work In Process
Fill in the blanks for the following:
(1)The total cost of the direct materials,direct labor,and factory overhead for jobs still in progress is $________.
(2)The company's overhead application rate is ________%
(3)Job No.6 had $26,550 of direct labor cost.Therefore,the job must have had $________ of direct materials cost.
(4)Job No.8 had $73,998 of direct materials cost.Therefore,the job must have had $________ of factory overhead cost.

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Definitions:

Porter's Diamond Model

A framework for analyzing the competitive advantage nations or regions possess due to four key factors: factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry.

Competitive Potential

Refers to the capacity of a company or industry to compete effectively in the market and expand its market share.

Industries

Broad categories that encompass various companies and organizations involved in the production of goods and services in specific areas of the economy.

Infant Industry Theory

A theory which states that certain emerging industries need to be protected and nurtured for a period of time or they will be unable to compete against established foreign firms.