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Strike441 [17]
2 years ago
12

Session Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-ho

urs. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours 70,000 Total fixed manufacturing overhead cost $511,000 Variable manufacturing overhead per direct labor-hour $ 2.10 Recently, Job K913 was completed with the following characteristics: Total direct labor-hours 150 Direct materials $ 705 Direct labor cost $4,650 The total job cost for Job K913 is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice
Business
1 answer:
vitfil [10]2 years ago
8 0

Answer:

Total cost= $6,765

Explanation:

Giving the following information:

Total direct labor-hours 70,000

Total fixed manufacturing overhead cost $511,000

Variable manufacturing overhead per direct labor-hour $ 2.10

<u>First, we need to calculate the predetermined overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (511,000/70,000) + 2.1

Predetermined manufacturing overhead rate= $9.4 per direct labor hour

<u>Job K913:</u>

Total direct labor-hours 150

Direct materials $ 705

Direct labor cost $4,650

Total cost= 705 + 4,650 + (150*9.4)

Total cost= $6,765

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