Exam 4: Job Costing

The following information was gathered for Longview Company for the year ended December 31,2018: Assume that direct labor-hours are the cost-allocation base. Required: a.Compute the budgeted factory overhead rate. b.Compute the factory overhead applied. c.Compute the amount of over/underapplied overhead.

Cowley County Hospital uses a job-costing system for all patients who have surgery.In March,the pre-operating room (PRE-OP)and operating room (OR)had budgeted allocation bases of 4,000 nursing hours and 2,000 nursing hours,respectively.The budgeted nursing overhead charges for each department for the month were $168,000 and $132,000,respectively.The hospital floor for surgery patients had budgeted overhead costs of $1,200,000 and 15,000 nursing hours for the month.For patient Fred Adams,actual hours incurred were eight and four hours,respectively,in the PRE-OP and OR rooms.He was in the hospital for 4 days (96 hours).Other costs related to Adams were: The hospital uses a budgeted overhead rate for applying overhead to patient stays. Required: What is the total cost of the stay of patient Fred Adams?

Using job costing would not be appropriate in the shipping industry.