Question

Job 731 was recently completed. The following data have been recorded on its job cost sheet: Direct Materials: $2,500 Direct Labor hours: 100 Direct Labor wage rate: $10.00 per hour The company applies manufacturing overhead on the basis of direct labor cost. The pre-determined overhead rate is 150% of direct labor cost. The total cost that would be recorded on the job cost sheet for job 731 would be:

Answer 1

Answer:

Total cost= $5,000

Explanation:

Giving the following information:

Job 731:

Direct Materials= $2,500

Direct Labor hours= 100

Direct Labor wage rate: $10.00 per hour

First, we need to calculate the direct labor cost and then allocate overhead:

Direct labor= 100*10= $1,000

Allocated overhead= 1,000*1.5= $1,500

Total cost= 2,500 + 1,000 + 1,500

Total cost= $5,000