Question

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $1,600 of direct materials and used $3,100 of direct labor. The job was not finished by the end of September, but needed an additional $2,100 of direct materials and additional direct labor of $5,600 to finish the job in October. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. What is the total cost of the job when it is completed in October?
Multiple Choice:

$12,400

$18,900

$29,800

$22,000

$25,700

Answer 1

Answer: $29800

Explanation:

The total cost of the job when it is completed in October will be:

Direct materials = $1600 + $2100 = $3700

Direct labor = $3100 + $5600 = $8700

Factory overhead = 200% × $8700 = $17400

Total cost = $3700 + $8700 + $17400

= $29800