Answer:
Total cost= $2,595
Explanation:
Giving the following information:
Estimated fixed manufacturing overhead cost= $162,000
Variable manufacturing overhead of $2.80 per direct labor-hour
Estimated direct labor hours= 60,000
Job K818:
Number of units in the job 10
Total direct labor-hours 50
Direct materials $920
Direct labor cost $1,400
<u>First, we need to calculate the predetermined overhead rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (162,000/60,000) + 2.8
Predetermined manufacturing overhead rate= $5.5
<u>Now, we can calculate the total cost for Job K818:</u>
Total cost= direct material + direct labor + allocated overhead
Total cost= 920 + 1,400 + 5.5*50
Total cost= $2,595
