Calculate the predetermined overhead allocation rate

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Reference no: EM133075338

Question - Omicronie Inc., provides project management services in the construction industry for a variety of clients. Each job is uniquely different and the Lynn Deberghie, the company's accountant decided to use job costing for the allocation of costs on the current jobs. She will be using construction-labour hours as the basis for overhead allocation. In December 2021, she estimated the following amounts for 2022:

Direct Materials $15,650,000

Construction Labour $11,200,000

Overhead $9,800,000

Construction Labour-Hours 600,000

The following results for the first quarter of 2022 for the following jobs that were started and completed in that same period.

 

Library

Dental Office

Medical Building

Direct Materials

$924,000

$1,134,600

$1,525,000

Construction Labour-Hours

76,400

47,200

19,500

Required -

1. Calculate the predetermined overhead allocation rate for 2022 and apply overhead to the three (3) jobs.

2. Calculate the cost of each job.

Reference no: EM133075338

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