Question

Wilson Products uses a plantwide predetermined overhead rate of $10 per direct labor-hour. Direct material and direct labor associated with Job X23 are $4,000 and $1,200 respectively. If Job X23 used 100 direct labor-hours, what is the total cost assigned to this job?

Answer 1

Answer:

$6,200

Explanation:

The total cost assigned to this job will be computed by summing up the direct costs and overhead costs.

Direct material                                                                                 = $4,000

Direct labor                                                                                     = $1,200

Overhead costs (100 direct labor-hours X $10 overhead rate)   =  $1,000

Total cost assigned to Job X23                                                    = $6,200