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Leslie Corporation uses job order costing system with normal costing for tracking cost to individual...

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Accounting

Leslie Corporation uses job order costing system with normal costing for tracking cost to individual jobs. Overhead is applied based on machine hours used, Prior to the start of the year, overhead was estimated at $200,000. Practical Capacity is 8000 direct labor hours and 4000 machine hours. $210,000 of overhead was applied to production during the year.

The general Ledger for the company revealed the following actual amounts for the year ended December 31 2020:

DR CR

Direct Materials 300,000

Direct Labor 400,000

Indirect Materials 20,000

Indirect Labor 40,000

Selling and advertising 80,000

Factory Repairs 50,000

Administrative Salaries 50,000

Depreciation expense-machinery 120,000

Depreciation expense-office 10,000

Sales Revenue 780,000

  1. What was the amount of actual overhead for the year?
  2. What is the predetermined overhead application rate?

The company is in the process of quoting a price on a job, Job Delta, for which they estimate the following

Materials:

Material A 2000 yards @ $10 per yard

Material B 1000 Gallons @ 5 per gallon

Direct Labor 50 hours @ 20 per hour

Machine hours 100 hours

  1. Whats the total cost of Job beta will be?

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