Question

Let's cost a job. Here is some data. What is the total cost on this job? Direct Materials $1,393 Direct Labor hours incurred to complete job 138 hours Hourly wage rate for DL workers $25.00 Predetermined Overhead Rate $82 per DL hour

Answer 1

Answer:

$16,159

Explanation:

The computation of the total cost is shown below:

= Direct material cost + Direct labor cost incurred + overhead cost

= Direct materials + Direct Labor hours incurred to complete × hourly wage rate + Direct Labor hours incurred to complete × Predetermined Overhead Rate

= $1,393 + 138 hours × $25 + 138 hours × $82

= $1,393 + $3,450 + $11,316

= $16,159