Question

Smith, inc. Uses a job-order costing system with the predetermined overhead rate of $12 per machine-hour. The job cost sheet for job #42a listed $12,000 in direct labor cost, $18,000 in direct materials cost, 1,200 direct labor-hours and 1,100 machine-hours. The total cost of job #42a is $.

Answer 1

Based on the information given the total cost of job #42a is $43,200.

Total cost of job #42a

Using this formula

Total cost of Job #42a = Direct materials + Direct labor + Predetermined overhead rate x Actual machine-hours

Let plug in the formula

Total cost of Job #42a = $18,000 + $12,000 + ($12 per machine-hour x 1,100 machine-hours)

Total cost of Job #42a= $18,000 + $12,000 +$13,200

Total cost of Job #42a= $43,200

Inconclusion the total cost of job #42a is $43,200.

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