Question

The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,049. A total of 35 direct labor-hours and 195 machine-hours were worked on the job. The direct labor wage rate is $21 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $24 per machine-hour. The total cost for the job on its job cost sheet would be:

Answer 1

Answer:

Total cost= $7,464

Explanation:

Giving the following information:

Job 450:

Direct materials= $2,049

35 direct labor-hours

195 machine-hours  

The direct labor wage rate is $21 per labor-hour.

The predetermined overhead rate is $24 per machine-hour.

The total cost is calculated using the following formula:

Total cost= direct material + direct labor + allocated overhead

Total cost= 2,049 + 35*21 + 195*24

Total cost= 2,049 + 735 + 4,680

Total cost= $7,464