Business, 12.03.2021 15:00 joseaguilaroux4zh

Blocher Company uses a job costing system. During the month of September, Blocher spent most of its time on job B10, which was started late in August. Following is cost information for job B10, other September costs, and relevant annual estimates. Materials issued:

15% for indirect use on job B10 and 85% for direct use through September $10,000
Labor:
Indirect labor for September 500
Direct labor for job B10 (pay rate of $20 per hour) 5,000
Other September Costs:
Utilities (40% Factory and 60% Administrative) 1,000
Depreciation (65% Factory and 35% Administrative) 700
Overhead Cost Driver:
Direct Labor Hours (DLH) Estimated Annual Overhead 20,000
Estimated Annual DLH 5,000
Markup-as a percent of cost 20%

Required:
a. What is the overhead to be applied for September to job B10?
b. What are total manufacturing costs for September for job B10?
c. Calculate the under or over applied overhead for September.

Answers: 3

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Blocher Company uses a job costing system. During the month of September, Blocher spent most of its...

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