Question

NWT Consultants, located in Yellowknife, Northwest Territories, is a small but growing business that analyzes a variety of construction materials before they are used by contractors. The testing procedures are specific to the individual materials used because reagents used for testing react differently based on their composition and the quantity used. How they are introduced into the materials for testing is also important.

During the month of December 2021, NWT completed 36 different jobs. Records pertaining to one such job (reference number: MT Q421-442) are as follows:

Date	Document	Amount
2/12/21	M-3316	$	900
4/12/21	L-4423		680
11/12/21	L-4437		1,150
13/12/21	M-3399		1,870
20/12/21	M-3407		1,340
22/12/21	L-4509		1,620

The documents with the references M and L pertain to direct materials and direct labour, respectively. NWT currently allocates overhead using direct labour cost as the allocation base. For the year 2021, it estimated $650,240 as the overhead amount and $508,000 for direct labour costs.

Required:
1. Compute the overhead allocation rate for 2021.

- Predetermined overhead rate: %

2. Compute the total costs of the job.

Amount

- Direct Materials: $

- Direct Labour: $

- Overhead: $

- Total Costs: $

     

3. Prepare a job cost sheet for job  MT Q421-442.

	JOB COST SHEET Number MT Q421-442 Date initiated Dec 01, 2021 Department Commercial Date completed Dec 23, 2021 Description Pesticide testing Units completed 1 Direct Materials Direct Labour Overhead Req. No. Amount Time-Sheet Hours Amount DL Cost Rate Amount % Cost Summary Job Completion Status Date Progress to date Dec 24, 2021 Completed and shipped to customer Total Cost Unit Cost

Answer 1