RMN Manufacturing Company makes large drills for specific customers and uses job order costing to accumulate costs. The company started operating in January with no inventories. During January, it worked on two jobs.
Job # Job #
Direct Materials Used $ $
Direct Labor at $ per hour $ $
RMN incurred manufacturing overhead costs of $ Budgeted monthly manufacturing overhead is $
The company uses a predetermined overhead rate based on direct labor hours per month.
Do not enter dollar signs or commas in the input boxes.
Round all answers to decimal places.
a Calculate the predetermined overhead rate per direct labor hour.
Predetermined Overhead Rate: Answer
b Determine the amounts of overhead to apply to each job.
Job # : Answer
Job # : Answer
