Question

The work in process inventory account of a manufacturing corporation shows a balance of $18,000 at the end of an accounting period. the job cost sheets of the two uncompleted jobs show charges of $6,000 and $3,000 for materials, and charges of $4,000 and $2,000 for direct labor. from this information, it appears that the corporation is using a predetermined overhead rate, as a percentage of direct labor costs, of:

Answer 1

Job 1
Direct material 6000
Direct labor 4000
Overhead=4000x
Where x is the predetermined rate

Job 2
Direct material 3000
Direct labor 2000
Overhead=2000x

Total cost=total cost of job 1+Total cost of job 2
18000=6000+4000+4000x+3000+2000+2000x
Solve for x to find the percentage
6000x=3000
X=3000/6000
X=0.5×100=50%

Answer 2

The predetermined overhead rate, as a percentage of direct labor costs of 50%.

First step is to calculate Manufacturing overhead applied  using this formula

Work in process = Direct materials + Direct labor + Manufacturing overhead applied

Let plug in the formula

$18,000 = ($6,000 + $3,000) + ($4,000 + $2,000) + Manufacturing overhead applied

Manufacturing overhead applied = $18,000 - ($6,000 + $3,000) - ($4,000 + $2,000)

Manufacturing overhead applied = $18,000 - $9,000- $6,000

Manufacturing overhead applied= $3,000

Second step is to calculate predetermined overhead rate, as a percentage of direct labor costs using this formula

Manufacturing overhead applied = Predetermined overhead rate × Direct labor costs

Let plug in the formula

$3,000 = Predetermined overhead rate × ($4,000 + $2,000)

Predetermined overhead rate = $3,000 ÷ $6,000

Predetermined overhead rate= 50%

Inconclusion the predetermined overhead rate, as a percentage of direct labor costs of 50%.

Learn more about predetermined overhead rate here:https://brainly.com/question/4337723