Case Construction Company, a threeyearold business, provides contracting and construction services to a variety of clients. Given that each construction job is different from the others, Susan Byrd the companys accountant, decided to use a joborder costing system to allocate costs to the different jobs. She decided to use construction labourhours as the basis for overhead allocation. In December she estimated the following amounts for the year :
Direct materials $
Construction labour $
Overhead $
Construction labourhours
Byrd recorded the following for the second quarter of for the three jobs that the company started and completed during the quarter.
School Residential Cinema
Direct materials $ $ $
Construction labourhours
Required:
Compute the predetermined overhead allocation rate for and apply overhead to the three jobs. Round your "Predetermined overhead allocation rate" to decimal places.
Compute the cost of each job. Do not round intermediate calculations.
