Overhead costs at year-end

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Sigma Co. appies overhead costs to jobs on the basis of direct labor costs. Job V, which was started and completed during the current period, shows charges of $5,000 for direct materials, $8,000 for direct labor, and $6,000 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $2,500 for direct materials and $4,000 for direct labor.

Should any of the overhead costs at year-end be added to Job W? If so, how much? Explain.

Reference no: EM13149309

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