Job Order Cost System

question 27

Essay

Job order cost system
Century Pools designs and builds custom pools and spas to the customer's order and uses a job order system.The predetermined overhead rate for the current year is 60% of direct labor cost.
At the end of the current year,Century Pools' direct labor cost totaled $170,000 and actual overhead amounted to $105,000.
A pool built for F.Becker required $32,000 of direct materials and $6,500 of direct labor.It was completed in May of the current year.
(a)Compute the total cost of the Becker pool as shown on the job cost sheet at date of completion.
(b)Compute the amount of under- or over-applied manufacturing overhead for Century's operations for the current year.
(c)What disposition is made of over- or under-applied overhead at the end of the year (assume that the amount is not material)?

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Definitions:

Pickets

Individuals or groups that stand or march outside a place of work to protest or to discourage others from entering, often as part of a strike.

Picket Line

A boundary established by workers on strike, especially in front of a workplace, to publicize their cause and to dissuade or prevent others from entering the premises.

Public Employees

Individuals who are employed by government bodies at the local, state, or federal level, typically working in public services.

Negotiate In Good Faith

Engaging in negotiations with honesty, sincerity, and intention of reaching a fair agreement for all parties involved.