Assume a company had no jobs in progress at the beginning of July and no beginning inventories. It started and completed only two jobs during July—Job Y and Job Z. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information from the month of July is available for the company as a whole and for Jobs Y and Z:
Estimated total fixed manufacturing overhead $ 13,000 Estimated variable manufacturing overhead per direct labor-hour $ 1.00 Estimated total direct labor hours to be worked 2,000 Total actual manufacturing overhead costs incurred $ 12,800 Job Y Job Z
Direct materials $ 13,000 $ 8,000 Direct labor cost $ 21,000 $ 7,500 Actual direct labor hours worked 1,340 500