Question

Green Cabinets is a custom cabinet builder. They recently completed a set of kitchen cabinets (Job Number 1478), as summarized below: Job Number:1478 Date Started: 4/07/20x8 Date Completed: 4/22/20x8 Description:Cherry kitchen cabinets AppliedDirect MaterialsDirect LaborManufacturing OverheadReq. NoAmountTicketHours AmountHoursRateAmount385$300 12816 $288 391 225 13023 426 395 150 13312 264 401 215 Total$890 Total51 $978 Cost Summary Direct Material Cost$890 Direct Labor Cost 978 Applied Manufacturing Overhead ? Total Cost ? Green Cabinets applies overhead to jobs at a rate of $12 per direct laborasked Sep 15, 2019 in Business by Jaanesblondehour.
a. How much overhead would be applied to Job #1478?
b. What is the total cost of Job #1478?c. What will be an ideal response?

Answer 1

Answer:

a. $612

b. $2,480

Explanation:

a. Overhead is applied at a rate of $12 per direct labor hour.

Overhead applied would therefore be;

= 12 * total labor hours

= 12 * 51

= $612

b. Total Cost = Direct labor cost + Direct Material cost + Manufacturing overhead

= 978 + 890 + 612

= $2,480