Question

Happy Maids cleans commercial buildings. In March, Happy Maids started and completed two jobs, Job 1000 and Job 1001. The job cost sheet for Job 1000 showed $1,200 of direct materials and 30 direct labor hours. The job cost sheet for Job 1001 showed $2,000 of direct materials and 50 direct labor hours. Overhead is applied at $7 per direct labor hour. The employees who worked on these two jobs were paid $15 per hour. What is the total cost for each of these two jobs for March?
A :
Job 1000, $1,610; Job 1001, $3,100
B :
Job 1000, $3,100; Job 1001, $1,860
C :
Job 1000, $1,860; Job 1001, $3,100
D :
Job 1248, $1,860; Job 1249, $2,750

Answer 1

Answer:

C :Job 1000, $1,860; Job 1001, $3,100

Explanation:

The computation of the total cost is shown below:

For Job 1000:

= Direct materials + Direct labor hours × wage rate per hour × Direct labor hours × overhead rate per hour

= $1,200 + 30 × $15 + 30 × $7

= $1,200 + $450 + $210

= $1,860

For Job 1001:

= Direct materials + Direct labor hours × wage rate per hour × Direct labor hours × overhead rate per hour

= $2,000 + 50 × $15 + 50 × $7

= $2,000 + $750 + $350

= $3,100