Question

The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,108. A total of 36 direct labor-hours and 234 machine-hours were worked on the job. The direct labor wage rate is $18 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $25 per machine-hour. The total cost for the job on its job cost sheet would be:

Answer 1

Answer:

Total cost= $8,606

Explanation:

Giving the following information:

Job 450:

Direct materials= $2,108

A total of 36 direct labor-hours and 234 machine-hours were worked on the job.

The direct labor wage rate is $18 per labor-hour.

The predetermined overhead rate is $25 per machine-hour.

We need to calculate the total cost for Job 450:

Direct materials= 2,108

Direct labor= 36*18= 648

Overhead= 234*25= 5,850

Total cost= $8,606