Question

The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,103. A total of 35 direct labor-hours and 263 machine-hours were worked on the job. The direct labor wage rate is $17 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $19 per machine-hour. The total cost for the job on its job cost sheet would be:

Answer 1

Answer:

$7,695

Explanation:

The computation of the total cost is shown below:

Total cost = Direct material cost + total direct labor cost + total overhead cost

where,

Direct material cost = $2,103

Total direct labor cost = 35 direct labor hours × $17 = $595

And, the total overhead cost is

= 263 machine hours × $19

= $4,997

So, the total cost is

= $2,103 + $595 + $4,997

= $7,695