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ITEM SET: JOB COSTING
Francis Co. (FC) is a manufacturing company and uses a job-order accounting system for its production costs. A predetermined overhead rate based on direct labor hours is used and applied to individual jobs. A flexible overhead budget was prepared for the fiscal as show below:
Overhead budget:	Low Capacity	Normal Capacity	High Capacity
Direct labor hours	110,000	130,000	150,000
Variable overhead costs	$325,000	$390,000	$455,000
Fixed overhead costs	$216,000	$216,000	$216,000
Total overhead	$541,000	$606,000	$671,000
The information presented below is for November, 2016. Jobs 2000 and 2001 were completed during November.
Inventories, 11/1/2016			Materials and supplies used in production:
Raw materials	$10,500		Job 2000		$45,000
Work-in-progress (Job 2000)	$54,000		Job 2001		$37,500
Finished goods	$112,500		Job 2002		$25,500
			Supplies		$12,000
Purchases of raw materials and supplies:			Total		$120,000
Raw materials	$135,000
Supplies	$15,000
Total	$150,000
Factory direct labor hours:			Labor costs:
Job 2000	3,500		Direct labor wages		$51,000
Job 2001	3,000		Indirect labor wages (4,000 hrs.)		$15,000
Job 2002	2,000		Supervisory salaries		$6,000
Total	8,500		Total		$72,000
Building occupancy costs:			Factory equipment costs:
Factory facilities	$6,500		Power		$4,000
Sales offices	$1,500		Repairs and maintenance		$1,500
Administrative offices	$1,000		Depreciation		$1,500
Total	$9,000		Other		$1,000
			Total		$8,000
Assumed predetermined overhead rate		$4.0	per direct labor hour
1. What was actual factory overhead incurred during November?
Item			Amount
Indirect labor wages
Supervisor salaries
Total factory equipment costs
Factory facilities
Supplies
2. What was the total cost of Job 2000 (using the assumed predetermined overhead rate per direct labor hour)?
Item			Amount
Direct labor cost
Applied overhead
WIP Job 2000
Materials Job 2000
3. What amount of factory overhead costs were applied to Job 2002 during November (using the assumed predetermined overhead rate per direct labor hour)?
Item			Amount
4.What amount of total overhead costs were applied to jobs during November (using the assumed predetermined overhead rate per direct labor hour)?
Item			Amount
5. What is the most appropriate predetermined overhead rate to be used to apply overhead to individual jobs?
Item			Amount
Normal capacity:

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