E following information pertains to Sigma Company for September: Direct Material Direct Labor Overhead Job #323 $3,200 $4,500 ? Job #325 ? 5,000 ? Job #401 5,670 ? $5,550 Sigma Company applies overhead for Job #323 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #325 and #401. The total cost of Jobs #323 and #325 is identical. Refer to Sigma Co. What amount of overhead is applied to Job #323?

The amount of Overhead applied to

Job # 323 is  $ 6300

Explanation:

             Direct Material    Direct Labor    Overhead

Job #323       $3,200             $4,500            ? ( applies overhead for Job #323 at 140 percent of direct labor cost)

Job #325           ?                     5,000              ?( 150 percent of direct labor cost for Jobs #325)

Job #401           5,670               ?                 $5,550 ( 150 percent of direct labor cost for Jobs #401)

We can easily calculate the missing values by using the information given

The amount of Overhead applied to

Job # 323 is 140 % of $ 4500

$ 4500 * 140%= $ 6300

Job # 325 is 150 % of $ 5000

$ 5000* 150% = $ 7500

The total Cost of

Job # 323 = $3200 + $ 4500+ $ 6300= $ 14000

Job # 325= $ 1500+ $ 5000 + $ 7500= $ 14000

Materials Job # 325= $ 1500

Job #401

Direct labor = FOH/ 150%= $5550/150%= $ 3700

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explanation:

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