Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Direct labor-hours= 140,000
Machine-hours= 70,000
Fixed manufacturing overhead cost $ 784,000
Variable manufacturing overhead cost per direct labor-hour $ 2.00
Variable manufacturing overhead cost per machine hour $ 4.00
Job 550;
Direct materials $ 175
Direct labor cost $ 225
Direct labor-hours 15
Machine-hours 5
We need to calculate the total cost of Job 550. First, we need to calculate the predetermined overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
<u>Based on direct labor hour:</u>
Estimated manufacturing overhead rate= 784,000/140,000= $5.6 per direct labor hour
<u>Based on machine hour:</u>
Estimated manufacturing overhead rate= 784,000/70,000= $11.2
Now, we can calculate the total cost:
Total cost= direct material + direct labor + allocated overhead
<u>Based on direct labor hour:</u>
Total cost= 175 + 225 + 5.6*15= $484
<u>Based on machine hours:</u>
Total cost= 175 + 225 + 11.2*5= $456
