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Marco Company shows the following costs for three jobs worked on in April.

Job 306 Job 307 Job 308
Balances on March 31
Direct materials used (in March) $ 29,000 $ 37,000
Direct labor used (in March) 24,000 18,000
Overhead applied (March) 12,000 9,000
Costs during April
Direct materials used 134,000 210,000 $ 120,000
Direct labor used 104,000 155,000 103,000
Overhead applied ? ? ?
Status on April 30 Finished (sold) Finished (unsold) In process

Additional Information

Raw Materials Inventory has a March 31 balance of $89,000.
Raw materials purchases in April are $550,000, and total factory payroll cost in April is $386,000.
Actual overhead costs incurred in April are indirect materials, $54,000; indirect labor, $24,000; factory rent, $34,000; factory utilities, $21,000; and factory equipment depreciation, $55,000.
Predetermined overhead rate is 50% of direct labor cost.
Job 306 is sold for $650,000 cash in April.
Required:
1. Determine the amount of overhead applied to each job in April.

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anthougo anthougo · Answer 1 · 2022-04-13T12:55:26+02:00

The amount of overhead costs applied to each job in April at Marco Company is as follows:

Job 306 Job 307 Job 308

Direct labor used 104,000 155,000 103,000

Overhead applied 52,000 77,500 51,500

Overhead application is the assignment of manufacturing overhead costs to the units or jobs produced in a reporting period.

The overhead application can be assigned using a standard or predetermined rate or based on activity levels used up by the units or jobs.

Job 306 Job 307 Job 308

Balances on March 31

Direct materials used (in March) $ 29,000 $ 37,000

Direct labor used (in March) 24,000 18,000

Overhead applied (March) 12,000 9,000

Costs during April

Direct materials used 134,000 210,000 $ 120,000

Direct labor used 104,000 155,000 103,000

Overhead applied ? ? ?

Overhead applied 52,000 77,500 51,500

($104,000 x 50%) ($155,000 x 50%) ($103,000 x 50%)

Predetermined overhead application rate = 50% of direct labor costs.

Learn more about the application of overhead costs at https://brainly.com/question/15739613