Question

The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,050. A total of 39 direct labor-hours and 261 machine-hours were worked on the job. The direct labor wage rate is $20 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $22 per machine-hour. The total cost for the job on its job cost sheet would be:

Answer 1

Total cost= $8,572

Step-by-step explanation:

First, we need to calculate the direct labor and allocated overhead:

Direct labor cost= 39*20= $780

Allocated overhead= 22*261= $5,742

Now, we can determine the total cost:

Total cost= direct material + direct labor + allocated overhead

Total cost= 2,050 + 780 + 5,742

Total cost= $8,572