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ludmilkaskok [199]
2 years ago
7

Branin Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hou

rs. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $160,000, variable manufacturing overhead of $3.40 per direct labor- hour, and 80,000 direct labor-hours. The company has provided the following data concerning Job A578 which was recently completed: Total direct labor-hours 250 Direct materials $ 715 Direct labor cost $ 9,000 The total job cost for Job A578 is closest to ______.
A. $8.80 per direct labor-hourB. $2.00 per direct labor-hourC. $3.40 per direct labor-hourD. $5.40 per direct labor-hour
Business
1 answer:
Mazyrski [523]2 years ago
6 0

Answer:

D. $5.40 per direct labor-hour and $11,065

Explanation:

The computation of the total job cost is shown below

= Direct material cost + direct labor cost + direct labor hours × predetermined overhead rate

= $715 + $9,000  250 hours × $5.4

= $715 + $9,000 + $1,350

= $11,065

The predetermined overhead rate is come from

= Total fixed manufacturing overhead cost ÷ direct labor hours + variable manufacturing overhead cost per direct labor hours

= $160,000 ÷ 80,000 direct labor hours + $3.40

= $2 + $3.40

= $5.40

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4 0
2 years ago
Read 2 more answers
Rory Company has a machine with a book value of $75,000 and a remaining five-year useful life. A new machine is available at a c
Alborosie

Answer: $7,500

Explanation:

In calculating the Incremental income we will add the amount of variable Manufacturing costs Rory Company will save as well as the income they will get from selling the old machine and then subtract the cost price of the new machine.

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