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LekaFEV [45]
3 years ago
14

Job WR53 at NW Fab, Inc. required $200 of direct materials and 10 direct labor hours at $15 per hour. Estimated total overhead f

or the year was $760,000 and estimated direct labor hours were 20,000.
What would be recorded as the cost of job WR53?

a. $200.

b. $350.

c. $380.

d. $730.
Business
1 answer:
Ira Lisetskai [31]3 years ago
7 0

Answer:

d. $730.

Explanation:

Material cost =                                $200

Direct labor expense = $15 x 10 = $150

Overheads = $38 x 10 =                 <u>$380</u>

Total cost                                         <u>$730</u>

Predetermined overhead rate = Estimated total overhead / estimated direct labor hours = $760,000 / 20,000 = $38 per labor hour.

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