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Nonamiya [84]
3 years ago
12

Watson, Inc. applies overhead cost based on direct labor hours. In completing the 200 units in job #120, the company incurred $1

2,000 in direct materials and 500 direct labor hours at $18 per hour. The predetermined overhead rate is $6 per direct labor hour. What is the total cost of the units in job #120?
Business
1 answer:
andriy [413]3 years ago
3 0

Answer:

Total cost= $24,000

Explanation:

Giving the following information:

Watson, Inc. applies overhead costs based on direct labor hours. In completing the 200 units in job #120, the company incurred $12,000 in direct materials and 500 direct labor hours at $18 per hour. The predetermined overhead rate is $6 per direct labor hour.

Total cost= direct material + direct labor + manufacturing overhead

Total cost= 12,000 + 500*18 + 6*500= $24,000

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