Question

Venus Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost. At the beginning of the year, it estimated the manufacturing overhead rate to be 20% of the direct labor cost. In the month of Jun Venus completed Job 13C and its details are as follows Direct materials cost Direct labor cost Direct labor hours Units of product produced $6,680 $23,000 34 hours 250 What is the total cost incurred for Job 13C? OA. $27,600 O B. $31,016 O C. $34,280 O D. $11.280

Answer 1

Total Cost Incurred = $34,280

so correct option is C. $34,280

Step-by-step explanation:

given data

Direct materials cost = $6,680

Direct labor cost = $23,000

Direct labor hours = 34 hours

Units of product produced = 250

to find out

total cost incurred for Job 13C

solution

we know here Direct Materials Cost and Direct Labor Cost

so here Manufacturing Overhead will be

Manufacturing Overhead = 20% × $23,000

Manufacturing Overhead = $4,600

Total Cost Incurred will be

Total Cost Incurred = Direct Materials Cost + Direct Labor Cost + Manufacturing Overhead .......................1

put here value we get

Total Cost Incurred = $6680 + $23000 + $4600

Total Cost Incurred = $34,280

so correct option is C. $34,280