Reference no: EM132598378

XYZ Company uses a job order cost system & applies overhead to production on the basis of direct labor costs. The costs incurred before Jan.01 is: direct materials $23k, direct labor, $14280, & manufacturing overhead $19040. with job 49 completed at a cost of $107100 & was part of finished goods inventory. with a $17850 balance on Raw Materials. During the month of Jan, jobs 51 & 52 begin & jobs 50 & 51. jobs 49 & 50 were also sold on account during the month $145180 & $188020.

Additional events:

1. puschaded additional raw material of $107100 on acct.

2. incurred factory labor costs of $83300. of this amount $19040 related to employer payroll taxes.

3. incurred manufacturing overhead costs as follows:

indirect materials $20230,

indirect labor $23800,

depreciation expense on equipment $14280, & various other manufacturers overhead costs on acct $ 19040.

job 50 direct materials $11900, direct labor $5950.

job 51 direct materials $46410, direct kabor $29750.

job 52 direct materials $35700, direct labor $23800.

estimated total manufacturing overhead costs $999600, direct labor costs $833k, & direct labor hours of 23800 for the yr.

Question 1: How do determine overhead rate percent? what figures do inoull & what do do with them?